CH March 2009 emagazine by Newsline

final march cover:cover novemver NEW janyto.qxd

March 2009

3/10/2009

3:48 PM

Page 1

Rs 60

Ad dummy.qxd

2/26/2009

10:25 AM

Page 1

Edit page.qxd

3/10/2009

6:35 PM

Page 1

EDITOR-IN-CHIEF’S NOTE

A letter to Papu Dear Papu Greetings! It’s the examination season, the holidays are still some time away, and it’s the time of the year when everything is at a lull. And for airlines, it’s the three months in the calendar they wish never existed. After all, it’s the season of the dipping seat factors and load factors. But the ingenious owner of Jet Airways always has a trick or two up his sleeve. Mr. Naresh Goyal decided that it was time to increase the fares. But how could he be a lone ranger? So, he roped in others, including subsidiary Jetlite, GoAir, Kingfisher and, wonder of wonders, Air India, to be part of his brainwave to lift the fares and bring some buoyancy to the airline business. But Papu, Naresh hadn’t reckoned with his friend getting red in the face. Arre Bhai! It was just like a Mumbai masala flick. Close-up: angry Praful Patel — Yeh mein hargeez hone nahin doonga! The Monopolies Commission quickly got into the Act and issued notice: “Sudden simultaneous hike in fares and withdrawal of promotional fares, both fall under restrictive trade practices,” thundered the Commission. So, Naresh smiled as only he can smile (remember how he smiled when he took back the 900-odd cabin crew in October) —kuchh meetha, kuchh teekha — and said that Jet Airways is for the passengers and quickly rolled back his fares. So remember Papu, airlines can still offer you a Rs one fare, although you can’t get a good samosa for that price today. Now let me explain: Air fares are broken into three distinct

CRUISING HEIGHTS March 2009

elements — base fare, fuel surcharge and passenger service fee (PSF). Now, when you are offered a Rs one fare or just a ‘pay only for the taxes’ ticket (as GoAir did at one point in time), it means that the base fare is Rs 1 or Rs 0. But you will still end up paying anywhere between Rs 2,800 to about Rs 3,500. Of this money, only Rs 221 goes to the government as PSF (Passenger Service Fee) — with the rest being pocketed by the airlines. But Nareshji and Vijayji and Raghuji, and Company prefer to call this as “taxes and surcharge”. The government has decided to meet the airlines and advise them to issue as single fare. But I have my doubts if they will listen to this piece of advice, Papu. After all, they have turned a deaf ear to Mantriji. They don’t care for the MRTP, public opinion does not matter and it’s only the fear of punitive action that’s prompted a rollback. Also, thank your stars that there are still a couple of airline operators who don’t want to get into this crony comfort business. They prefer that each airline sets its own price, based on its own business model. So, for the moment, enjoy the lower fares and hope that the airlines are never united. That will be a day of mourning, Papu. And hope that Madhavan Nambiar and Naseem Zaidi can convince Nareshji, Vijayji and Raghuji that tum Janata ke saath rahoge, to Janata tumhare saath rahegi. Kyun Papu, theek hai na?

Off the cuff

Content 2-3 march CH 2008 new.qxd

3/10/2009

Coming: Green jets Over the years, jet engines on planes have become bigger and less noisier. Indeed, the new engines cannot be compared to those of the 1960s. Those engines had narrower inlets, which apparently caused the whooshing noise. Today, the modern turbofan is bigger and 80 per cent quieter. In addition, they use lesser amounts of fuel and in turn produce fewer greenhouse gases. However, with the world going into overdrive over pollution and climate change and new laws to control greenhouse gases coming into effect, scientists are working to produce more efficient — and, therefore, greener — jet engines. A jet engine is essentially a fan that draws in air from the front. The air is then compressed and burnt with fuel. Result: hot gases come out with a noise from the back. These gases, while travelling within the jet engine, drive a turbine which is connected to the fan. So, more air is drawn in and the process keeps going. The latest jet engines from Rolls-Royce have “high bypass” turbofans, which rely on a bigger but slowermoving volume of air to provide thrust. These engines possess smaller turbines which use less fuel and are a lot less noisy. According to a report in The Economist, Jet engine manufacturers are now working towards a sizeable reduction in fuel consumption — the target set by the aviation industry is 50 per cent — by 2020, which would of course cut CO2 emissions in half. The industry has already started the reduction exercise by cutting down on air-traffic-control delays, but the most amount of savings would come from better engines.

5:55 PM

Page 2

contents

THE PRAFUL PATEL SAGA p42 Ever since he took over as Minister for Civil Aviation, his department has been creating waves. For most of the years, it was a bullrun, but now it is bleak and bearish. What is his legacy? A look at the highs and lows of the PP years.

NEWS DIGEST

p14

India could well be moving in the direction of being downgraded by the FAA. Plus: SpiceJet's courageous move in showing its willingness to launch a regional carrier to link short-haul destinations even in these adverse times. CRUISING HEIGHTS March 2009

SPOTLIGHT

p28

The successful landing of a US Airways flight in Hudson River has put the focus on the gloomy state of American aviation and the need for urgent overhaul.

Content 2-3 march CH 2008 new.qxd

3/10/2009

5:55 PM

Page 3

ARTICLES NEWS VIEWS EDITS INTERVIEWS CLIPPINGS TRAVEL & TOURISM PROFILES NEWS DIGEST

INTERVIEW

p58

Turkish Airlines CEO Dr Temel Kotil believes in the Indian aviation market, notwithstanding the current scenario, and feels that things are quite reasonable for those who know what they are doing.

AIR CARGO

p61

BACK PAGE

p88

Passengers flying on Emirates never had it so good. With the airline's mobile phone and SMS text service, they can now remain connected with their families and friends, and their business colleagues, even in mid-air.

Managing Editor

TIRTHANKAR GHOSH Senior Editor

RENU RANGELA Consulting Editor

BHART BHARDWAJ Layout Artists

RUCHI SINHA PRADEEP JHA RAVINDER GUSAIN

p56

Air Force One has always been `Made in America' and will continue to be so for now, plus the story of how adamant passengers on an Aeroflot flight forced change of pilot. Jet Airways’ first couple has been voted ‘International Entrepreneurs of the Year’. SpiceJet and Air India have come out with various schemes for the benefit of their customers. Plus: More aviation and tourism news.

K SRINIVASAN

Art Director

GLOBETROTTING

p76

Editor-in-Chief

R KRISHNAN

The economic downturn has had a detrimental effect on Indian the air cargo industry, but companies in this business are still looking for the proverbial silver lining.

SNIPPETS

CRUISING HEIGHTS

Co-ordinating Photo Editor

H C TIWARI Subscription

JAYA SINGH Gen Manager

RAJIV SINGH Director

Form IV (See Rule 8)

CRUISING HEIGHTS

1. Place of Publication 2. Periodicity of Publication 3. Printer’s Name Whether Citizen of India? (If foreigner, state the country of origin) Address

: : : : :

New Delhi Monthly K. Srinivasan Yes Not Applicable

4. Publisher’s Name Whether Citizen of India? (If foreigner, state the country of origin) Address

: : :

4C Pocket-IV, Mayur Vihar, Phase-I, Delhi-110091 K. Srinivasan Yes Not Applicable

5. Editor’s Name Whether Citizen of India? (If foreigner, state the country of origin) Address

: : :

4C Pocket- IV, Mayur Vihar, Phase-I, Delhi-110091 K. Srinivasan Yes Not Applicable

4C Pocket- IV, Mayur Vihar, Phase-I, Delhi-110091 6. Name, Address : 4C Pocket- IV, Mayur Vihar, of individuals who own the Phase-I, Delhi-91 newspaper and the partners 1. Renu Mittal or shareholders holding more 2. K. Srinivasan than one per cent of the total capital I, K. Srinivasan, hereby declare that the particulars given are true to the best of my knowledge and belief. Date: 26 February, 2009

sd/K. Srinivasan Publisher

CRUISING HEIGHTS March 2009

RAVI SHARMA GM (Business Development) ANUJ SAHNI Executive Director

RENU MITTAL Editorial & Marketing office: Newsline Publications Pvt. Ltd. C-15, Sector 6, Noida 201 301 Tele: +91-120-4145555 All information in CRUISING HEIGHTS is derived from sources we consider reliable. It is passed on to our readers without any responsibility on our part. Opinions/views expressed by third parties in abstract or in interviews are not necessarily shared by us. Material appearing in the magazine cannot be reproduced in whole or in part(s) without prior permission. The publisher assumes no responsibility for material lost or damaged in transit. The publisher reserves the right to refuse, withdraw or otherwise deal with all advertisements without explanation. All advertisements must comply with the Indian Advertisements Code. The publisher will not be liable for any loss caused by any delay in publication, error or failure of advertisement to appear. Owned and published by K Srinivasan 4C Pocket-IV, Mayur Vihar Phase-I, Delhi-91 and printed by him at Nutech Photolithographers, B-240, Okhla Industrial Area, Phase-I,

Periscope 4-5 March 2008.qxd

3/10/2009

4:40 PM

Page 2

Under pressure

PERISCOPE

“

The near break-even situation in December 2009 has given the airlines a temporary breathing space but the overall fiscal environment continues to be uncertain. CAPA Indian sub-continent & West Asia CEO KAPIL KAUL on the pressure on full-service carriers like Jet Airways, Kingfisher and Air India.

LETTERS TO EDITOR

The story, Crashing Skywards! (February ’09) brought out the glitches which the Air India and Indian merger is passing through. The merger has indeed hit a rough patch and is heading nowhere since its inception. The reign of Praful Patel as Aviation Minister did usher in a new era. But despite that, he has not been able to resolve the teething problems in the merger of Air India and Indian. As a matter of fact, this problem should have been resolved much earlier. It is a pity that the government-owned entity is passing through such difficult times even after 50 years. Ram Rai, Jaipur February 2009

Rs 60

Illustrations: Rajeev Kumar

Adrenaline shot to rejuvenate Air cargo (February ’09) was a well-written story. Without a doubt, the air cargo industry needs a booster shot. This can only happen if the air cargo players operating in India can get their act together to make the country a world-class cargo hub. The writer has made some very valid suggestions for making India a truly remarkable cargo hub. It is good that the Airports Authority of India has charted out some path-breaking plans to enhance cargo infrastructure, which is a positive step in the right direction. But a lot remains to be done in the sector as it is still in its nascent stage. Sita Rekhi, Bhopal

The interview of V P Agrawal, “I shall continue to strive for high standards” made for interesting reading. V P Agrawal has indeed taken over at a crucial time, when the airline industry is passing through difficult times. He would really have to go an extra mile to revamp the ailing airline industry in India. The airline industry, under the stewardship of V P Agrawal, can achieve major milestones only and only if he gets the much-needed support from the government. The turnaround of the aviation sector in India is possible only if V P Agrawal is given the autonomy and the right direction by the Ministry of Civil aviation. P Ghosh, Hisar All correspondence may be addressed to Editor, Cruising Heights, C-15, Sector 6, Noida 201 301 OR mail to cruisingheights@newsline.in

All for money The current wet-lease market rates for wide-bodied aircraft are in the range of $5,200-6,000 per hour. So, for flying an average 380 hours, Jet is expecting revenues of $2-2.2 million per month per aircraft from the wet lease.

Jet Airways CEO WOLFGANG PROCK-SCHAUER on the airline's decision to wet lease aircraft.

Some hope yet! The FAA has not taken any decision. They are just doing some assessment and we are taking action on that.

DGCA chief NASEEM ZAIDI on the US Federal Aviation Administration’s (FAA) move to downgrade India from category one to category two.

Indigo maange more We are looking to hire 30-50 captains and the recruitment process should conclude soon. IndiGo president ADITYA GHOSH on the carrier’s decision to hire more pilots, notwithstanding the downturn in the industry.

Global impact This is a part of our overall network review as there is a drop in demand globally due to the economic slowdown. Singapore Airlines general manager (India) CW FOO on the airline's decision to reduce flights out of India.

Back to old times The airline industry has been experiencing combative fares, and GoAir is no exception. We have decided to revert to the ‘buy early and pay less’ option. It will be accepted well, and customers will use the offer to their advantage. GoAir CEO EDGARDO BADIALI on the carrier's decision to restore apex fares.

CRUISING HEIGHTS March 2009

Periscope 4-5 March 2008.qxd

3/10/2009

4:40 PM

Page 3

FTAs during the year 2008 were 5.37 million as compared to

The global financial meltdown has affected the Indian tourism industry. The number of foreign tourist arrivals was low in January 2009, according to the latest figures sent out from the Ministry of Tourism. The MoT compiles monthly estimates of foreign tourist arrivals and Foreign Exchange Earnings on the basis of data received from major airports. Here are a few of the important highlights.

Foreign Exchange Earnings (FEE)

Foreign Tourist Arrivals (FTAs) FTAs during January 2009 were 4.87 lakh as compared to 5.91 lakh

during the month of January 2008 and 5.22 lakh in December 2008. The decline in FTAs was mainly due to the ongoing global recession.

5.08 million during 2007. Notwithstanding the global financial meltdown and terrorist activities, the number of FTAs increased in 2008 in comparison to 2007. FEE during January 2009 were Rs. 4,598 crore as compared

to Rs. 5,438 crore in 2008 or US $941 million as compared to US $1382 million.

COLD STATS

Tourism figures echo meltdown effects

FEE during 2008 were Rs. 50,730 crore as compared to Rs.

44,360 crore in 2007 or US $11747 million as compared to FEE of US $10729 during 2007.

LOOKING GLASS

No. We are not smuggling cash. All this money is for the airport charges which we passengers have to pay before taking a flight...

Value for money I very much believe in the low-cost airline model, I believe that this is the right model for India. Indians are very valueoriented customers. SpiceJet CEO SANJAY AGRAWAL on the future potential for low-cost airlines.

Tough times This year (2009) is shaping up to be one of the toughest ever years for international aviation. IATA director general GIOVANNI BISIGNANI on the forecast for 2009 in terms of number of passengers and yields.

CRUISING HEIGHTS March 2009

Off the Record march.qxd

3/10/2009

6:16 PM

Page 4

OFF THE RECORD

Red-tape all the way!

t was literally a red-tape fest. Or, as one journalist put it pithily: “Feeta kato abhiyan.” But that’s the way it is on election eve, and the Civil Aviation Ministry was no different. If Praful Patel makes a run for the Guinness Book of Records, it is a fair bet that he will find an easy entry into the book:

18 airports in a week’s time is one hell of a run, and perhaps, a Tendulkar-like record that will take a long long time to erase. Or, perhaps, never be erased at all! February 19: Inauguration of new Srinagar airport terminal. February 20: Bhoomipujan of new terminal buildings at Mumbai airport; Inau-

CRUISING HEIGHTS March 2009

guration of new terminal buildings at Indore, Bhopal, Raipur and Ranchi airports. February 21: Inauguration of new terminals at Visakhapatnam, Tiruchirappalli and Goa airports. February 22: Symbolic handing over of Nagpur Airport by AAI to Maharashtra Airport Development Company.

Ad dummy.qxd

3/2/2009

11:33 AM

Page 1

Off the Record march.qxd

3/10/2009

6:16 PM

Page 6

OFF THE RECORD

February 25: Inauguration of new terminal buildings at Amritsar, Dehradun, and Jaipur airports. February 26: Inauguration of new domestic terminal building at Delhi and Vadodara airports. February 27: Inauguration of new terminal building at Surat. February 28: Bhoomipujan for the development of new Greenfield airport at Pakyong, Sikkim, and inauguration of new terminal building at Dibrugarh airport. March 2: Foundation of air terminal at Bikaner. Inauguration of terminal at Calicut. So how did this cross-country abhiyan happen? Well, as Airports Authority of India

Vijay Mallya

(AAI) insiders would have us believe, these inaugurations had been planned to be held in a phased-out manner some months earlier. But last-minute glitches, minor delays and over-runs, and the consequence was that you had the general election staring you in the face. So, it was one marathon cross-country run to get the whole thing off the ground. For the record, among those who participated in this exercise, apart from Mantriji and AAI Chairman Vijai Prakash Agarwal were: Sonia Gandhi, Omar Abdullah, Laloo Yadav, Farooq Abdullah, Ghulam Nabi Azad, Saifuddin Soz, Ashok Chavan, Vilas Muttemwar, Bhuvan Khanduri, Ashok Gehlot, Prakash Singh Badal, Tarlochan Singh, Narendra Modi, P Chi-

CRUISING HEIGHTS March 2009

dambaram, Raj Shekar Reddy, Manohahar Kamat, Syed Sibte Razi, Pawan Kumar Chamling, Arun Gogoi and B P Singh. The two most prominent MPs who most certainly deserve mention are Navjot Singh Sidhu from Amritsar and the late Girdhari Lal Bharagava from Jaipur. Air India CMD Raghu Menon, President of Boeing Dinesh Keskar and Air Deccanâ&#x20AC;&#x2122;s Managing Director Captain G R Gopinath were the other players on hand. So how does one really describe a feeta kato abhiyan or a bhoomipujan samaroh? Frankly, one is as good or as bad as the other. Here, though, are a few memorable vignettes from the week-long celebration of the modernisation of Indian airports.

Ad dummy:Ad dummy.qxd

1/12/2009

11:51 AM

Page 1

Off the Record march.qxd

3/10/2009

6:17 PM

Page 8

OFF THE RECORD

Sidhu paaji, tusi great ho: With Navjot Singh Sidhu, what you see is what you get. There is an incredible energy about the man thatâ&#x20AC;&#x2122;s difficult to describe, but when he starts gushing, he is like a volcano in torrent (one guess is that when he furious, the lava must be terrible!). It was paeans and paeans in praise of Praful Patel at the inau-

guration of the Amritsar Airport. And mind you, Sidhu wasnâ&#x20AC;&#x2122;t just happy praising Mantriji; he would stop for effect, ask the crowds to clap and then resume his chatter. In a way, the Amritsar Airport was a complex operation indeed. When Praful had taken over as Civil Aviation Minister, the drawings for the airport had been

CRUISING HEIGHTS March 2009

finalised and it was a traditional building that had some resonance with the Golden Temple. He scrapped that plan, had a committee set up under Rajya Sabha MP, and now has Sports Minister M S Gill to consider the other designs that the AAI offered, and to have a replica of the Golden Temple inside the complex. After much huffing and

Ad dummy.qxd

2/26/2009

10:34 AM

Page 1

Off the Record march.qxd

3/10/2009

6:17 PM

Page 10

OFF THE RECORD

puffing they agreed to the changes — a modern, airy, environmentally-friendly modular terminal that they now agree was the better choice. The only one who didn’t show up for the function was the ubiquitous Dr Gill. Well, some people have the sort of ego that one only hears about. As his Rajya Sabha colleague Tarlochan Singh was overheard telling someone: “Ego da sawalaa si!” Ego for what and why. That’s a story we’ll reserve for some other occasion. Bharagava’s last hurrah: Ironically, Girdhari Lal Bharagava, who was a sixtime MP from Jaipur (2009 would have been his seventh and he had been nominated for the seat by the BJP), was eloquent in his speech at the inauguration in the Pink City. “For years, we have been demanding a terminal at Jaipur, this is a long-standing demand of the people that is being fulfilled. Better late than never,” he thundered. “Bharagavaji, itna waqt to nahin lagna chaiye tha. Hamari sarkar ne to aashwasan diya to pura kiya,” said Pra-

ful with a twinkle in his eyes, alluding to the fact that the NDA had wasted six years without any great development in civil aviation and added (lest Bharagava be embarrassed), “Aap hamesha sansad mein bhi milte the, aur aapke prayatnon ki mein sarahna karta hoon.” Just weeks later, Bharagava was gone. Dead of a massive heart attack in Ahmedabad where he had gone to attend a Parliamentary meeting. He was 73. Incredible Sikkim: Pakyong in Sikkim is about 27 minutes by chopper from Bagdogra. As you climb over the tea gardens from the foothills of Siliguri, you are transported into clouds, lush mountains, and before you say Jack Robinson you are into Pakyong.The chopper gingerly lands on a mound of earth, that was a small hillock till the day before. The mud road to the venue of the function was laid “in the last 48 hours”, one AAI officer tells us. It tells you of the sort of complex engineering skills that will be required to build Sikkim’s first airport. A long-held dream that’s finally coming true.

CRUISING HEIGHTS March 2009

The airport will be ready three years down the line and will be an ATR-compliant airfield. Literally, acres of hillocks will be sliced to fill up land and create a level field on which the airport will come up. It should be fascinating to see the surroundings change month after month as Pakyong changes. For the record, the state capital Gangtok is 10 minutes by chopper from Pakyong and an hour by road for the 35 kms. It tells you a lot about what connectivity can do to this state. Hello Dibrugarh: Further up is Dibrugarh, one end of Assam. The AAI has built a sensational terminal in this small town and Chief Minister Tarun Gogoi was so delighted with the building and the design that he sought the architects at the function to have his picture snapped with them. As he got into his Pawan Hans helicopter to zip off to Tezpur, Gogoi, a man of few words couldn’t resist saying: “Acchha hai!” In a way, it sums up the feel-good week in aviation. A buoyant week in times of a long bearish streak!

Off the Record march.qxd

3/10/2009

6:17 PM

Page 11

Serving Maata Rani Maata Vaishno Devi Ji on Pawan Hans.â&#x20AC;? The public sector chopper company started its passenger services to the THE LUCKY ONE: Jaya Motwani became passenger number holy shrine in April 1,00,000 to fly the Pawan Hans chopper to Maata Vaishno Devi shrine. last year. The comf you have seen the film Khosla Ka pany was awarded a three-year contract Ghosla, you will understand what after competitive bidding. Pawan Hans not it means to be Maa Bhakt. Such is only provided great convenience to reach the pull and the devotion that peo- the holy shrine within minutes, but ple spend a lifetime in the service brought down the ticket cost from Rs. of Maata Rani. Well, now Pawan Hans is 4,000 to Rs. 2,700 for a return trip with making sure you serve her in comfort and priority darshan. some luxury. On February 21, Pawan For the record: On February 21 at 1:35 Hans completed ferrying one lakh passen- pm, Jaya Motwani became passenger gers that must be some record. An ecstat- number 1, 00,000 when she entered the ic Chairman R K Tyagi said : â&#x20AC;&#x153;This Pawan Hans office at Katra Helipad. And achievement of carrying 100,000 devo- then it was flowers and sweets and cake, tees to the shrine has been a privilege and with the icing on the cake being a framed has happened due to the blessings of picture of Maata Vaisho Devi, on her

return from the darshan. Pawan Hans would also be starting helicopter services to Shri Kedarnath Dham/Badrinath Dham during the coming yatra season in May, 2009. Now somebody needs to take Anupam Kher (Kamal Kishore Khosla), Boman

It was celebration time at the Pawan Hans office at Katra Helipad.

Irani (Kishan Khurana) and Navin Nischol (Bapu/Sethi) for a darshan of Maata Rani. What do you say Tyagiji?

Enjoy a

snow capped

summer holiday

Arrive at the Himalayas in just 40 min.

Daily Connecting: C H A N D I G A R H R A N C H I

DELHI KOLKATA LUCKNOW KULLU GOA

From Chandigarh

Experience comfort, Experience your Holiday Travel.

Delhi

Exclusive club class and spacious economy leg rooms welcome you along with Gourmet cuisine on board.

Goa Kullu

Get the Warmth of Exclusive hospitality as we welcome you to India's first Regional Airline that has been synonymous to comfort, highest load factor and on-time performance.

Lucknow

To Goa Kullu Goa Lucknow Chandigarh Delhi Lucknow Goa Delhi Delhi

Dep 0730 0640 1030 1800 1340 1340 1340 0800 0800 1930

Arr 1310 0720 1310 1900 1830 1600 1900 1310 0840 2030

Exclusive Holiday Fares, Honeymoon Fares For booking contact: +91-9971303030, +91-124-4646000, Toll free no: 1800 103 1800 For charter queries contact: sales@mdlrairlines.in, +91-9811847576

www.mdlrairlines.in

CRUISING HEIGHTS March 2009

NEWS DIGEST FINAL.qxd

3/10/2009

9:19 PM

Page 14

NEWS DIGEST

oes India face the prospects of being downgraded by FAA, as Indian authorities have reportedly and consistently not adhered to safety standards of ICAO? Should India be downgraded, then airlines like Jet Airways and Air India, which operate to and from the US, could face stringent security checks when Indian planes land there. In October 2006, ICAO had carried out safety oversight programme for India. The aviation sector was found wanting in several areas, especially in safety oversight and qualification of key personnel in safety, operational oversight and ATM. The ICAO safety oversight report noted that nearly 40 per cent of the 240 established technical positions or slots in the DGCA were vacant, and many of its directorates were under-staffed and therefore could not complete their assigned functions and duties. It referred to the shortages and unfilled vacancies in the flight inspection directorate and aerodrome standards directorate. Hence, ICAO made a strong recommendation that India should ensure that its DGCA had sufficient number of qualified and experienced technical personnel to perform effective safety oversight of aviation industry. In fact, adherence to ICAO standards categorised the country concerned as Category I, and if it did not, then Category II. India is Category I but is likely to be ICAO Worl Headquarters pushed to Category II should it

Dealing with the

the airport’s second cargo terminal and upgradation of existing facilities. The proposals have been sought from players in the cargo handling business to design, develop, finance, build and operate the new terminal for a 25-year concession period. In addition, separate proposals are being invited for the upgradation of the existing cargo facility.

Mohali airport to be ready in 2 years Delhi International Airport

DIAL kicks off cargo expansion plans Despite the setback to the first phase of modernisation plans of Delhi Airport due to the financial crunch, the GMR group-led Delhi International Airport Limited (DIAL) has succeeded in setting the ball rolling for expansion of cargo facilities at the international airport. DIAL has sent out a request for proposals (RFP) notice for the construction of

Mohali’s upcoming international airport will start functioning from 2011. This was decided recently at a meeting of Airports Authority of India (AAI) held in Delhi. The AAI had earlier decided that international flights would start operating from the existing airport from June this year. Greater Mohali Area Development Authority (GMADA) officials said the project for the international airport is proposed to be completed in two phases. “AAI will bear all the capital expenditure and will also depute staff. The airport would be used not only for domestic and international flights, but cargo planes

CRUISING HEIGHTS March 2009

Photo Courtesy: www.wikipedia.org

INFRASTRUCTURE NEWS

FAA

NEWS DIGEST FINAL.qxd

3/10/2009

9:19 PM

Page 16

NEWS DIGEST fail to address the issues listed by ICAO. As things usually are in India, none of the recommendations were implemented for over two years. Incidentally, if India were to be placed in Category II then it will be in the august company of Guyana, Indonesia, Nauru, Philippines, Serbia, Ukraine and Israel. Incidentally, even Pakistan is in Category I. The ICAO recommendations are taken seriously by FAA, whose team was expected to visit India this month to discuss with DGCA and the Ministry of Civil Aviation. This would be a follow-up of its first visit in January 2009. During that visit, FAA sought details from DGCA on the Indian aviation sector performance, especially on safety mechanism, air surveillance, passenger facilities etc. Further, it also wanted to know how its guidelines were being followed in India. The massive growth in the Indian air traffic outpaced aviation infrastructure, and its direct consequence has been serious shortage of skilled manpower. FAA, after its January 2009 audit, had highlighted various aspects of Indian regulatory system and infrastructure, and made a large number of recommendations, both short term and long term. It expected these to be followed urgently, especially in the light of an inordinate delay in implementing the 2006 ICAO recommendations. Market grapevine has it that when Jet Airways recently wanted to firm up its code share agreement with a US carrier, the FAA stopped it pending resolution of already identified safety issues in India. Failure to meet the standards could

also mean that Air India and Jet may not be able to change or expand their US schedule, and other airlines will not be able to start operations to the US. Though this seems to be somewhat of an exaggeration, the fact remains that safety standards have to be met as they are in the interest of all. FAA had also informed that it would come on a second follow-up visit in February 2009. It was at this point the Babus felt that such a visit would only hasten the embarrassment factor, and requested FAA to postpone the visit. Though officials in DGCA have denied this and said that in any case the FAA team would come only in March ‘09, the DGCA, on its part, had issued a circular in February ‘09 to ensure that some of the recommendations made earlier by ICAO, as also some observations of FAA, were implemented. This forced the Ministry of Civil Aviation to officially state that “FAA has not reached any decision to downgrade India to Category II (in global standards). We are continuing discussions as part of the agreement between India and the US for development and modernisation of the Indian civil aviation infrastructure.” It may be pointed out here that under FAA rules, action has to be initiated within 45 days of its earlier notice of January 7, 2009. This meant that FAA could technically begin reassessment by February 22, 2009 for the downgrade to Category II to happen. But after much pleading, India got the FAA to postpone its visit to India to March ‘09. In the meantime, DGCA issued a circular on drafting more technical personnel from ATM and CNS of AAI to save face. To tide over manpower shortage

carrying flowers, agro products and garments would also take off from here,” they said. Around Rs 500 crore would be spent on construction activity alone for the airport.

Duty-free retail space finds few takers

in critical departments at airports, DGCA has decided to engage the services of trained personnel from AAI to carry out safety oversight functions. Two departments where this is proposed to be done are Communications Navigations and Surveillance (CNS) and Air Traffic Management (ATM) at airports across India. As per the DGCA circular, the seconded inspectors will also assist DGCA in the preparation of guidelines, check lists and other associated works. The seconded CNS inspectors will have the powers to carry out inspection and surveillance of the aeronautical telecommunication stations to ensure that the performance and maintenance of CNS equipment is in accordance with the stipulated guidelines. Apart from CNS commissioning, the inspectors will also assist the Directorate of Air Space and ATM in the DGCA for certification and framing of relevant regulations. Besides, ATM inspectors will “oversee” all matters relating to licensing of ATCOs, and also matters relating to airspace management like navigation procedures for ATS route, performancebased navigation procedures and terminal instrument approach landing procedures. All these have left AAI rather jittery because, as it is, the Authority has a shortage of ATCOs. Against a sanctioned CNS strength of 3,200, it has only 1,800, and against the sanctioned staff of 2,200 ATCOs, AAI has only 1,700. Zor Se Jhatka Zor Se Laga. But then you get to understand safety only when you get a Jhatka!

According to the Airports Authority of India (AAI), four out of the six airports got no response at all. These were Jaipur, Lucknow, Amritsar and Thiruvananthapuram. Coimbatore airport received two bids — from Dubai-based airport retailer Flemingo International Ltd and state-owned India Tourism Development Corporation (ITDC) — and Pune airport got one from Flemingo. The proposal was aimed at promoting airport retail and upgrade existing airports. The poor response is being seen as a sign of the current economic gloom since a report in September last by real estate consultant Cushman and Wakefield had actually indicated a huge potential in this area, saying that about 78 million sq. ft of retail, commercial and hospitality space would come up by 2015, with 40 airports being upgraded and seven new ones built.

Bagalkot to get greenfield airport A Flemingo duty free shop

With the proposal to run duty-free concessions at six small international airports failing to evoke any significant response, the airport retail concept seems doomed from the start.

Bagalkot district in Karnataka is all set for a makeover with plans afoot to construct a greenfield airport to promote tourism and help horticulture exports from the district. This was disclosed recently by district in-charge and Higher

CRUISING HEIGHTS March 2009

NEWS DIGEST FINAL.qxd

3/10/2009

9:19 PM

Page 17

SpiceJet’s

courage A

t the height of the airline industry boom in 2006-07, the presiding Ministry of Civil Aviation ensured that besides those who received approval to launch their scheduled domestic airlines, no fresh permission would be given to any new start-up. As part of this, carriers like SpiceJet, IndiGo, Kingfisher, GoAir received their approvals. The booming domestic aviation attracted more players and 12 new companies formed a queue to try their luck. The explanation then given was that lack of infrastructure made it difficult for authorities to approve new airlines. Such

exclusion helped the newly launched airlines to cozy up and form the Federation of Indian Airlines to act as an industry body. At an informal level, some members did everything to prevent entry of new players. The argument —- that lack of infrastructure made it difficult to allow new players —was very conveniently forgotten when the expansion plans of existing players were cleared with great enthusiasm. It is a different matter that they are repenting in leisure. At such time of repentance, SpiceJet has dared to say that it will not be averse to starting a regional carrier to link short-haul destinations. Spice has 19 aircraft comprising Boeing 737-800s

Education Minister Aravind Limbavali. The minister revealed that the state government had approved the establishment of a Horticulture University to promote studies and research in horticulture.

Cochin airport in for Rs 120 crore overhaul

and Boeing 737-900 ERs. SpiceJet CEO Sanjay Agrawal has stated that his airline would like to set up a new subsidiary, which will provide regional air connectivity in the domestic market and operate as a feeder airline connecting smaller cities and towns to the major cities where SpiceJet currently flies. “We are evaluating all options to increase our presence in the aviation sector and a feeder service is one of them. It makes sense to have smaller aircraft to take care of regional operations, while its bigger fleet of B737-800s and B737-900s is used for longhaul and international flights, which Spice schedules to start from May 2010, once it

to take up multifaceted development schemes, which include commissioning of Centre for Perishable Cargo (CPC), expansion of international and domestic terminals and construction of additional aprons. Other projects included in the development plan are: first phase of golf course, improvement of facilities in the emigration wing, launching of an Aviation Academy and introduction of industrial park. CIAL has also proposed better marketing of Cochin as a tourist destination and a cargo hub. To update technology and boost the income of the airport, international seminars and airport revenue conferences will also be held, Minister S Sarma, member of the Board of Directors of CIAL, revealed.

AAI Pune begins ILS installation Cochin International Airport

With a Rs 120 crore package, the Cochin Airport is in for major overhaul. The Cochin International Airport Ltd (CIAL) is all set

The Airports Authority of India (AAI), Pune, has started the process of installation of a sophisticated Instrument Landing System (ILS) at the city’s Lohegaon airport. AAI recently released a notice inviting tenders for the Rs 2.24 crore electrical engineering works that are meant for operationalising the ILS. Imported category I (CAT-I) level ILS equipment has already been acquired by the AAI for this purpose.

CRUISING HEIGHTS March 2009

NEWS DIGEST FINAL.qxd

3/10/2009

9:19 PM

Page 18

NEWS DIGEST SpiceJet had enough cash and was yet to fully utilise the funds it received from WL Ross. With new confidence, he said there is a possibility of consolidation in the Indian airline industry over the next fiscal, and SpiceJet will look at buying opportunities. At the same time, SpiceJet was also open to the idea of equity dilution to foreign airlines if overseas carriers were allowed to pick up stake in domestic Indian carriers. Sanjay Agrawal believes in the LCC model and feels it is the right fit for India. Indians are value-oriented customers and nearly 25 per cent of the recent growth rates may continue in the next decade as well. Very soon, the traffic share between Full Service Carriers and LCCs would be 50-50. And in the next fiscal 2010-2011, SpiceJet hopes to be in the Black. SpiceJet has no outstandings, like lease charges, jet fuel or airport charges. “We probably have more cash in bank than some of our biggest competitors,” remarked Sanjay Agrawal. “We are not looking for Capital investment,” he said, and added that he was looking at acquisition of another low cost carrier since, in his opinion, “There is not enough room for five low cost carriers in India and a consolidation would surely happen. Once it happens we will be interested in buying another airline.” Should we then expect crony capitalism to continue in the next government as well, or the second innings of this government? After all, cronies know when to allow a new airline!

Bird Group moves ahead

ird Group has signed two agreements — one with a global repair and overhaul services provider to regional and military aircraft companies and the other with a business jet company. Bird Services Pvt Limited, a wholly owned subsidiary of Bird Group,

Photo: H.C. Tiwari

completes the mandatory five years of continuously flying in domestic routes as a scheduled domestic operator. Pending that, it will be recruiting 60 more pilots and training them so that the airline is in a position to utilise the five more Boeing 737 aircraft it is scheduled to receive in 2011. Preparing for the future, SpiceJet will appoint three new directors to facilitate the appointment of WL Ross as a director on its Board. It may be recalled that Ross invested $80 million in Spice to strengthen it. The recent appointment of Ranjeet Nabha of WL Ross & Co on its Board took the total number of directors to eight. However, the current rules are that foreign directors cannot exceed the strength of one third in the total number of directors on the Board. Therefore, to appoint Ross, Spice will have to get three more Indians on its Board. Even as this process is on, SpiceJet has exuded confidence that it will be able to turn the corner in the coming months, notwithstanding the general belief in the aviation industry that it will see only Zero growth. Spice made a loss of Rs 18 crore in the third quarter (October-December) of 2008, as the airline had to settle the claim of SK Modi, who earlier owned the airline, then known as ModiLuft, and since rechristened SpiceJet. Excluding this charge, the airline would have made a profit of Rs 70 lakhs. Its operating revenue rose by 16 per cent, year on year, to Rs 472 crore on a 24 per cent rise in average fare. Despite a 12 per cent fall in passenger numbers, its unit revenue rose by 11 per cent. The airline expects that, beginning Summer, 09, there will be an uptrend in passenger demand. According to Agrawal,

Ankur Bhatia

Chennai’s second runway to cross river

Lohegaon airport

An ILS is a key navigational tool which facilitates safe landing of aircraft under reduced visibility conditions, caused by weatherinduced factors like rain or fog. It helps avoid situations like aborted landings or flight diversion. The project is aimed to be completed three months after the work is handed over. Among other things, the work shall involve laying of power cables, LT panels, stabilisers and advanced lightning protection system.

Joining the league of Atlanta, Brooklyn and Madeira Island, Chennai airport will have a runway across a river. The new runway will be operational in about a year. Once it’s operational, aircraft using the secondary runway at Chennai airport will make their run for take-off over a bridge across the Adyar river. Airports Authority of India (AAI) has started construction works to extend the 2,035-metre secondary runway by 1,400 metres, including 835 metres on the northern side of the river. AAI is getting technical assistance from IITMadras because the river is flood-prone. Mumbai airport has an end of its runway across the Mithi river, but this stretch is used only for taxiing. The extension of the secondary runway is being carried out at a cost of Rs 430 crore. The runway works, without the bridge, will cost Rs 230 crore, while construction cost of the bridge is estimated to cost Rs 200 crore. KGL Constructions has bagged the contract to build the runway excluding the bridge, while a separate contract will be awarded for the bridge construction. Also to get ‘Flyover Travelator’: As part of the expansion plans at the airport, Chennai airport will get a ‘Flyover

CRUISING HEIGHTS March 2009

NEWS DIGEST FINAL.qxd

3/10/2009

9:19 PM

Page 20

NEWS DIGEST

entered into a comprehensive marketing agreement with Pacific Propeller International (PPI), a global repair and overhaul services provider to regional airlines and military aircraft companies.

The agreement was signed by Ankur Bhatia, ED of Bird Group, Jeff Heikke, President PPI, and Jim Roosevelt, Regional Director (Asia Pacific) of Washington-based Pacific Propellers. Under the agreement, PPI will provide its services and products through Bird Air Services within the sub-continent. It will also facilitate

MRO services for propeller-based engine aircraft in India. In another agreement with VistaJet Holdings, SA Switzerland, Bird Group will market the jet major’s equipment in India, Bangladesh, Bhutan, Maldives, Mauritius, Nepal, Pakistan and Sri Lanka. VistaJet operates a diversified fleet of Learjet 40XR and Learjet 60XR, Challenger 300, 604, 605 and 805 Jets and Global Express XRS Jets.

MRO

update

carrying out various checks. The existing runway has also been extended so that all types of aircraft can land there. Four more hangars are likely to be built. New Yorkbased Global Technology Investment and Punj Lloyd have 33 per cent stake each in Air Works. Currently, it has 75 aircraft under its management, which include helicopters and private jets.

ir Works is setting up a $25 million MRO facility in Hosur, Tamil Nadu, 50 kilometers from Bengaluru. Till Air India’s MROs come up in Delhi and Nagpur, Air Works claims its MRO will be the largest independent MRO. Located at Taneja Aerospace airstrip in Hosur, Air Works is equipped to carry out C checks for various types of aircraft. According to Air Works CEO Fredrik Groth, doing C check maintenance work in their facility will be 20 per cent cheaper than carried out in other countries, as major part of C checks is labour intensive. Air Works will have the first mover advantage. There is not business for setting up more than three or four MROs in India. Besides Air Works, GMR has got into an agreement with Malaysian Airlines to set up an MRO at its Hyderabad airport. Boeing and EADS are setting up air frame MROs in Nagpur and Delhi respectively. Air Works signed a 25-year lease with Taneja Aerospace and already has one hangar in place for

Fredrik Groth

Sogane airport project hit

Chennai airport

Travelator’. to become the first in the country to have this facility. The facility will have an elevated road on the top and a connecting tube with two ‘walkalators’ below. This will connect the domestic and international terminals, covering a distance of about one km, according to Airports Authority of India (AAI) officials. The new facility would help in quicker movement of passengers from domestic to international terminal and vice versa.

Karnataka’s Sogane airport project has hit a bottleneck in the wake of the State Government’s decision to de-link itself from the consortium of the Hyderabad-based Maytas Infra. The move follows Maytas’ reported involvement in the multi-crore scam in Satyam Computers. Maytas Infra, a company promoted by former chairman of Satyam Computers Ramalinga Raju, had won the bids to construct airports in Shimoga and Gulbarga in consortium with Nagarjuna Construction Company and Vienna International Airport’s VIE India Project Development and Holdings. Now, however, Chief Minister B.S. Yeddyurappa is reported to have asked Chief Secretary Sudhakar Rao to B.S. Yeddyurappa arrange for re-tendering for these airport projects. The project at Sogane on BR Project Road was estimated at Rs. 110 crore and 600 acres of the land had been kept ready for it.

CRUISING HEIGHTS March 2009

NEWS DIGEST FINAL.qxd

3/10/2009

9:20 PM

Page 21

Photo Courtesy: www.boeing.com

erospace Processing India (API) has opened its processing facility in Belgaum (Karnataka) to cater to the needs of the aerospace manufacturing industry located in QuEST Global Precision Engineering SEZ. Magellan Aerospace Limited and QuEST Global established API as independent operating company to provide approved aerospace treatments that are not readily available in India. The fully integrated scalable facility became operational earlier this year. API has invested in capabilities which would enable fulfilling the demand for sourcing

Exporting

A processing facility in operation.

Airline Parts fully finished parts from India. In the initial phase, the facility would be focused on processes for aluminium, titanium, and stainless steel components for aero structure and aerospace components.

The plant has state-ofthe-art capabilities, such as fully automated Anodising line, fully automated Etching line, Semi-automatic Titanium Etching Line, Primer and Painting Line, Advanced Fluorescent

Pressure to expedite Vijayawada project

Particle Inspection Line, Magnetic Particle Inspection Line and Advanced 7 axis robotic facilities etc. The API facility also has a dedicated reverse osmosis plant, zero discharge effluent treatment plant, statutory testing facilities. API has received the support of Boeing and Airbus in establishing operations to meet the rigorous aerospace specifications, and is working with each customer to achieve full operational approvals.

addressed to the Chief Minister, president of the chamber M. Rajaiah said that the district administration should expedite the process of acquiring additional land of 506 acres, which was required for the expansion of the airport. Rajaiah pointed out that the modernisation and expansion of the airport had been pending for a long time. Though the Memorandum of Understanding (MoU) signed by the Airports Authority of India (AAI) and the Government of Andhra Pradesh in February 2007 had made it clear that the entire work should be completed by July 2008, the works were just halfway through now, he added.

New terminal opens at Vizag airport Vijayawada Airport

The Andhra Pradesh Chamber of Commerce and Industry has urged Chief Minister YS Rajasekhara Reddy to expedite work on the terminal building project of Vijayawada Airport. In a letter

With the opening of its new terminal, the Visakhapatnam airport has now started operating international flights, and also flights round the clock. The Rs 100-crore new terminal, located on 20,000 m area, is an integrated one for both domestic and international flights, with a passenger capacity of 700 (400 domestic and 300 international) against the present 150. It is equipped with a hi-tech flight despatch system, escalators, elevators and a car park.

CRUISING HEIGHTS March 2009

NEWS DIGEST FINAL.qxd

3/13/2009

12:49 PM

Page 22

NEWS DIGEST

All-new T1D gives

IGIA a new look

Delhi Chief Minister Sheila Dikshit lights the lamp at the inauguration of T1D as Praful Patel, G M Rao (extreme left) and Secretary Madhavan Nambiar (extreme right) look on.

he gleaming new glass and steel structure stands testimony to the new experience for domestic travellers flying from Delhi’s Indira Gandhi International Airport (IGIA). Very soon, the long queues and hassles of travelling from this airport will become a thing of the past. With the inauguration of the new Domestic Departure Terminal 1D (T1D), the airport has joined the league of the country’s modern airports. The terminal was inaugurated by Minister for Civil Aviation Praful Patel in the presence of Delhi Chief Minister Sheila Dikshit and other senior officials from the Ministry of Civil Aviation and regulatory bodies. T1D has been developed by Delhi International Airport (P) Limited (DIAL), a GMR Group-led Joint Venture Consortium, and will raise the capacity of domestic departures to 10 million passengers per annum, while enhancing the travel experience for domestic passengers out of IGIA. When DIAL took over the reins of IGI Airport in 2006, the passenger traffic had already exceeded the capacity of the airport and was increasing rapidly. While the project mandate called for the renovation of existing terminals and construction of a new runway and passenger terminal (T3), the

DIAL management felt that steps had to be taken to ensure the comfort of domestic passengers till T3 got ready in 2010. Hence was born the idea of constructing a completely new terminal for domestic passengers, in addition to the Master Plan that DIAL was already implementing. The construction of this terminal was no easy job. T1D is located between the existing Domestic Arrival T1C and Domestic Departure T1A. This area was originally occupied by a large number of critical airport service buildings and utility facilities, like airline cargo operations, power houses, telephone exchange, air conditioning plants, banks, police station and government offices, among others. All these buildings had to be relocated and made fully operational at alternate sites before work could begin on the new terminal. According to DIAL and Group Chairman GM Rao, “Given the enormous difference between traffic and domestic terminal capacity at IGI Airport, we felt it was extremely important to provide domestic passengers with new facilities which would allow them to travel smoothly and comfortably. Hence we took the decision to mobilise additional resources and capital to come up with this terminal, in addition to the Master Plan already under ...Continued on page 24

CRUISING HEIGHTS March 2009

Ivonne Kuger from Munich Airport is head of a unique exercise called Operation Readiness and Airport Transfer, that will see the seamless opening of the new domestic terminal in Delhi. Her thoughts: What really is ORAT? ORAT is an abbreviation for Operational Readiness and Airport Transfer. We arebasically looking into commissioning of new airport facilities, as in Hyderabad for example. ORAT started in Munich in 1991-92, when we had to move our own city airport to a Greenfield site outside Munich. A new airport was built and the old airport was shifted. And the experience and the lessons learnt from that particular project…we decided to collect and to make use of it in other projects worldwide. And ever since then, a small team of consultants from Munich airport has been working in projects in the rest of the world. Major projects you have handled? The key project, you might be aware, is in Kuala Lumpur International Airport (KLIA) and then Bangkok (Suvarnabhumi), and a few airports in Europe such as Athens and Brussels. We had our own in-house project again, when we opened Terminal 2 in Munich in 2003, and currently we have four teams working worldwide. A big team is working in Abu Dhabi, where they are commissioning a new terminal. Another team is working in Moscow (Sheremetyevo), one more team in Vienna, where they are also building a new terminal, and then this team here in Delhi. Most of the (Delhi) team used to work in Hyderabad and are now here. I am basically heading a team of five consultants from Munich airport. How do you see the two: the Hyderabad experience and the Delhi project? In Hyderabad, it was definitely the development of infrastructure on a Greenfield site. That was like building a space station on Mars. You had nothing there. You had to bring in each and every piece in Hyderabad. From the operations point of view, the biggest challenge was the shift from the existing airport to the new airport, because a lot of the processes were completely different. You have to imagine the old Begumpet airport in Hyderabad. Yes, it was functional, it was operational, and I am sure all the operators knew what they were doing. They were experienced, they had

NEWS DIGEST FINAL.qxd

3/13/2009

12:49 PM

Page 23

‘The challenge is to demolish first before building something new’ many years of airport experience, but they were not used to a technology-driven environment. Most of the processes were manual, which were much more time consuming and manpower consuming. And by shifting them to the new Hyderabad airport (RGIA), they had to learn about how to operate an airport based on systems, whether it is an IT system or a non-IT system. So a lot of training, and a lot of familiarisation, were required. People had to learn very much in a very short time. I am actually very proud of this project because a lot of things could have gone wrong there, but due to people’s dedication and commitment, they made it happen. In Delhi, the biggest challenge is that they have to demolish existing infrastructure first, before they can even build something new. So you have this permanent feel of a construction site everywhere. When you look at the domestic area right now for example, the access road to the terminal is changing almost on a weekly basis. Every time you come to the airport, it’s a different route. It’s not because nobody thinks about it in advance, it’s because people really have to work in square meters almost, in shifting the road by another ten metres, demolishing a building, building a car park, paving some area. How is ORAT in Delhi different to Hyderabad? They were Greenfield projects. In Munich, when we built Terminal 2, we were in a similar situation to the Terminal 3 (in Delhi) that is being built now. It was a Greenfield area, but within the airport. So you have to be very careful in order not to hinder the existing operations. You have to fence it off very carefully; you have to make sure that access to the side is there, and then merge it step by step, in a phased manner, with the existing operations. That is the biggest challenge. And that will also be the biggest challenge here from an operational point of view. Because Delhi airport already exists, all the staff is already there, they are already trained, and they know the processes. But now they have to shift into this new environment, while the existing operations still need to be up and running. So, unlike Hyderabad, where we told them to shut it down on this side and to open it up on another, in Delhi, you have to very carefully plan out the manner and the

phasing in which you shift the operations and the staff. The second biggest challenge is that they are all busy, they work day-to-day; they work full shifts. If I want to get one member of staff for a training exercise or a trial exercise, I have to release them from the existing operations. Now, nobody wants to invest in additional manpower or additional equipment for this transition phase. That means everybody has to work extra hours, and spend more time than what they are already spending, in order to do the day-to day job, plus the training and learning for the new one, and then eventually shifting to the new one. That is a big challenge. How tough is the training? I’m still not through with the training because there is one more vital aspect to it. It’s not only training people. You also have to make sure that what they learn can be applied during real operations. It is one thing sitting in a classroom and learning about a system, it is one thing knowing how to switch it on and how to switch it off, but how do you react in real operational circumstances? (What to do) when fog hits you, when a delay comes in, when a passenger, for whatever reason, has a medical emergency? And what we do in the next step is we conduct a programme that we call trial operations, we simulate operations in the new facilities and we invite all the operators to participate in that exercise.

How did you handle it? Well, you know you improvise. We chartered buses and we had hundreds of people to be trained in 24 hours only. We put them on the bus, we took them to the air-site, we showed them around, and we explained to them as best as possible how the new processes would be, where the facilities are. Yes, we did a crash course and because you don’t have a choice, you act. This was a very smart move by GMR. GMR decided to support the physical shift of the equipment. So we provided cranes, trucks, we provided movers and packers just to make sure that the equipment gets to the new airport on time. If it hadn’t worked…….? There would have been a problem, and yes, it would have been an airline problem, but in the end, all fingers are pointing to the airport because, for the outside world, they don’t know how to distinguish - whether this is an airline issue or an airport issue. It’s just that the airport opening was not successful because so many flights were delayed. Whether it’s the airlines’ fault nobody cares. The media won’t deal with it like that, and the passengers also won’t.

Any problems in Hyderabad? We had major challenges but not really any major glitches. The biggest challenge was that the ground-handling policy changed about 30 hours before the airport opened. We had trained ground-handling staff. They were excellent at doing their job. They had procured brand new equipment, imported from the best supplier in the world, they were ready to go, and then, 30 hours before the start of operations, the domestic airlines refused to make use of their services and they insisted on selfhandling. A similar thing can happen here again, but since we have more international airlines here, the situation is slightly different, because the international operators and carriers are not interested in selfhandling at a station like Delhi.

CRUISING HEIGHTS March 2009

NEWS DIGEST FINAL.qxd

3/13/2009

12:49 PM

Page 24

NEWS DIGEST development. Today, the gleaming glass and steel structure stands testimony to the enormous effort put in by DIAL’s engineers and contractors.” With the construction of the new terminal, passengers will now be able to get dropped off at the upper level of the twostorey structure, where they can use any of the eight gates to enter the terminal. No longer will they have to queue for getting baggage X-rayed before checking in. Thanks to the ultra modern four-level in-line baggage handling system, passengers can simply walk up to the designated check-in counters, deposit their luggage and collect the boarding card. This system allows greater space for passenger amenities, which would otherwise have been used for the X-ray machines. In addition, the baggage scanning and assembly area is at the lower level, which also frees up a lot of space at the departure level which is utilised for passenger facilities. Check-in itself would now be a breeze, thanks to 72 check-in counters and 16 self check-in kiosks spread across eight rows. Based on the Common Use Terminal Equipment system, the number of counters allocated to a specific airline can be made flexible, given the load factor at that hour. This would ensure that long queues at the check-in counter would be a thing of the past. Security clearance would be smooth and efficient, thanks to 16 channels, complete with their own Door Frame Metal Detectors and Baggage Scanners. Post security-check, passengers would be able to relax in the comfort of a large security hold area, with its unique F&B, Lounge and Retail Area. Spread across two levels, this area would feature a wide variety of sit-down restaurants, cafes and take-away kiosks run by reputed F&B chains. In addition, those with a penchant for shopping would be able to choose from a vast repertoire of leading brands. Spacious lounges will also be available for those wishing to relax. This area would also feature Wi-fi Internet connectivity. Upon the announcement of their flight, passengers would proceed to the gate lounge at the lower level to board their coaches to the aircraft. Sixteen boarding gates have been built to facilitate easy transfer to the coaches. In addition, a special ‘Contact Zone’ service will be available near the terminal entrance to provide facilities for passengers with special needs — passing through IGI Airport. These would include wheelchair assistance for physically challenged passengers, assistance for unaccompanied minors, amongst others. DIAL Chairman and GMR Airports Managing Director Kiran Kumar Grandhi said, “A great airport not only has modern

Mumbai all set to go the Delhi way If Delhi was ready with its terminal, can Mumbai lag behind? Civil Aviation Minister Praful Patel recently performed the ground breaking ceremony of the New Integrated Passenger Terminal building at the Chhatrapati Shivaji International Airport at Sahar. CSIA has passenger traffic of 25.8 million per annum and is the country’s busiest airport. The terminal building will have a total floor area of approximately 4.3 million sq.mtrs spread across four levels. The highly flexible gating plant and terminal arrangement will ultimately accommodate 40 million passengers - Praful Patel at the ground-breaking ceremony with Maharashtra CM both domestic and Ashok Chavan, GVK Reddy and L&T’s A M Naik. international, per year, operating 24 x 7. shops, food and beverages outlets, The new terminal building will offer 184 lounges and other travel services. check-in counters, 14 baggage claim Located within the metropolis of belts and 52 contact positions with pas- Mumbai, the airport’s modernisation and senger boarding bridges. About 7 lakh upgradation is considered a challenge square feet will be reserved for retail because of land constraints. equipment and facilities, but also a high level of service quality. DIAL is taking every step to ensure that the passengers’ experience at T1D and IGIA, as a whole, is a smooth one, and for that we are imparting extensive training to our staff.” Further, to ensure that the terminal transitions smoothly from inauguration to commercial operations, DIAL is conducting extensive Operational Readiness and Airport Transfer (ORAT) trials. DIAL has partnered with Munich Airport, Germany, which has deputed a team to conduct these trials at IGIA. The primary task of these trials is to ensure smooth and seamless start of airport operations. The objectives of ORAT include having a coordinated approach to prepare all airport stakeholders, including the airport operators, airlines, baggage and ground handlers and security agencies, such as the Central Industrial Security Force, for the shift of operations to the new terminal. Besides, the trials ensure that there is streamlining of procedures, with each staff member involved with the airport knowing their roles and responsibilities. Another key aspect of these trials currently being conducted is to familiarise the CRUISING HEIGHTS March 2009

airline, baggage and security staff with the four-level new in-line baggage handling system. Trials are being conducted with roleplaying passengers and real luggage to test the equipment in actual conditions. ORAT trials will continue over the next few weeks to ensure complete readiness of man and machine for commercial operations. DIAL will also be extensively communicating with passengers and stakeholders for information on airlines shifting to the new Terminal and the new route layout at IGI Airport’s domestic terminals through various media channels. DIAL is a joint venture company, comprising the Bengaluru headquartered global Infrastructure major GMR Group with a significant pan-India and International presence, Airports Authority of India, Fraport, Malaysian Airport and India Development Fund. DIAL is working towards the modernisation and restructuring of the Delhi Airport. The project being developed by DIAL under Public Private Partnership has been given the mandate to finance, design, build, operate and maintain the Delhi Airport for 30 years with an option to extend it by another 30 years.

Gurcharan Bhatura.qxd

3/10/2009

4:43 PM

Page 2

COMMENT

â&#x20AC;&#x2DC;Sovereign does

no wrongâ&#x20AC;&#x2122; Gurcharan Bhatura

On February 9, 2009, an air tragedy was averted at the Mumbai airport. But could the circumstances that led to the situation turning so grave have been averted? Clearly, the entire mess could easily have been avoided. n air tragedy was averted, and the providential escape saved Mumbai airport from the worst possible safety rating. On February 9, 2009, Mumbai airport luckily escaped a deadly accident on its runway. The mere thought of an aircraft carrying 155 persons and rolling at a speed of around 200 kilometers per hour hitting a helicopter from the front would send shudders down anyone's spine. Some say it is because of uncontrolled growth in aircraft movements, and others blame it to the shortage of Air Traffic Controllers (ATC). There are a few others, however, who view it as a pilot error. Pending the inquiry report, Air Chief Fali Homi Major, at a press conference at Bengaluru on February 12, 2009, said that his helicopter pilots, ferrying a Presidential party, obeyed all instructions given by Mumbai ATC, implying that they were not at fault. Perhaps after 60 years of independence, he is still of the belief that the sovereign does no wrong. By saying so, he blamed ATC for the omission.

The public in general, and aviation professionals in particular, are wondering as to what provoked the Air Chief to unfairly protect the helicopter pilots carrying the Presidential party. Busy airports like Mumbai have controlled air space around them, and handle flights operating under Instrument Flight Rules (IFR) demanding positive control on aircraft. In exceptional circumstances, some flights are cleared under special Visual Flight Rules (VFR), when the pilot takes over the responsibility to look out for airport traffic. These helicopters were also flying under special VFR. Under the laid-down procedures, no aircraft will enter the airport air space or even change its position on ground without the specific permission of ATC (Control Tower). All the aircraft on ground, or in the neighbouring air space, work on tower frequency. Approaching aircraft first work on Approach Control, and then change over to control tower well ahead of reaching the finals (a position around 5-6 kilometers from runway thresh-hold),

Gurcharan Bhatura.qxd

3/10/2009

4:43 PM

Page 3

before landing. Working on common tower frequency, they also get to know the airport traffic around them. On February 9, at 09:13 as per practice, Pratap 1 (Leader of the formation) contacted Approach Control (a unit of ATC) and estimated to arrive at Mumbai airport at 0920 IST. The dooropen time of the VVIP helicopter was given at 09:25. Other helicopters of the formation were expected to follow the leader and maintain the same time of arrival. In case of any change in time, such as early arrival, the pilots were expected to inform the ATC so as to enable them to restructure the sequence of other departing and arriving aircraft. At 09:17:02, Mumbai tower granted take-off clearance to Air India flight IC 866. Pratap 2, that was neither in contact with approach control nor with Mumbai tower and was expected to land after Pratap I, landed in front of the rolling aircraft at 09:17:38. Noticing Pratap 2 on runway, Mumbai tower told IC 866 to stop take-off. Mumbai airport is the busiest airport in the country. The declared capacity of Runway 27 (that was in use on the day of the incident) is 30 aircraft movements per hour. That means the ATC system in place at Mumbai airport allows aircraft operations with two minutes separation. This can only happen if the pilots are disciplined and accurate in their estimated time of arrival/departure. That is where the error of arriving three minutes early created the avoidable situation. The visibility on that day was around 3 kilometers, and pilots flying under VFR are expected to be more vigilant to keep track of the aircraft movement on the ground and in the vicinity of the airport. Ideally, the pilots flying under these circumstances are expected to be in contact with Mumbai tower, as the tower is the appropriate ATC unit to grant landing and take-off clearance. When in contact with Approach Control, to know the local traffic, they are also expected to monitor the tower frequency.

IC-866 (Air Bus 321) was lined up on the runway. It appears that the VVIP pilots failed to notice it. Then IC-866 was cleared for take-off. It appears that the helicopter pilots failed to see even a rolling aircraft on the runway. Had they been in contact with the Mumbai tower, or at least were monitoring the said frequency, they would have known that Mumbai tower had cleared an aircraft for departure at 09:17:02. Pilots carrying the President of the country are expected to be all the more vigilant and careful. In the instant case, it appears that they were neither watchful of the runway traffic, nor did they maintain contact with the tower. The Air Traffic Control services are provided by the Airports Authority of India. The VVIP pilots belong to the Indian Air Force. DGCA is an independent regulatory authority on Civil Aviation. The Government of India has rightly ordered an enquiry to be conducted by a team headed by Director General of Civil Aviation. Director Helicopters Indian Air Force and Executive Director Air Traffic Control, Airports Authority of India are other members of the team. The industry is looking for a fair and unbiased report. In these circumstances, the Air Chief's efforts to unfairly protect the VVIP pilots, in the absence of full facts or without impartial investigation, were neither appropriate nor called for. Now, with the incident having become a public issue, everyone is keen to know as to who pushed our President and passenger aircraft IC866 into grave danger. In the interest of safety, the Government, on receipt of the findings of the enquiry, should fix the responsibility and take measures to ensure that such incidents do not occur again. (The author, a former Airport Director, Mumbai, is Director General, Foundation for Aviation & Sustainable Tourism (FAST), a think tank in Civil Aviation. These are his personal views.)

In these circumstanc es, the Air Chief's efforts to unfairly protect the VVIP pilots, in the absence of full facts or without impartial investigation, were neither appropriate nor called for

Sulenburger.qxd

3/10/2009

4:48 PM

Page 2

SPOTLIGHT

‘BRACE FOR

IMPACT!’

When a crippled US Airways flight successfully landed in the Hudson River, it changed the lives of the two cockpit crew and the cabin crew aboard the Airbus A320 forever. They were feted, given keys to scores of cities, put on talk shows and invited to the President’s swearing-in. But the underlying theme throughout the Fab Fives’ coast-to-coast felicitation has been the gloomy state of American aviation, and how things need to be overhauled. A special report.

CRUISING HEIGHTS March 2009

“My aircraft,” Sully said. “Your aircraft,” said First officer Jeffrey Skiles.

nd the rest, as they say, is history! The New York Magazine had perhaps what was the most comprehensive story on the Hudson Miracle, as the whole of America now describes — a powerless American Airlines Boeing 737 coming desperate to land, short of La Guardia, rapidly losing height and thumping perfectly in the Hudson. Zero fatalities, all evacuated in less than 15 minutes. However, as the magazine pointed out: “But it wasn’t really his aircraft. It hadn’t been for years. When Chesley B. Sullenberger III was first starting out, 40 years and 19,663 flight hours ago, com-

Sulenburger.qxd

3/10/2009

4:48 PM

Page 3

CREATING HISTORY: When a US Airways flight landed safely in Hudson River, its crew made an achievement that will go down in aviation history.

the Super Bowl, and continues with the pilot appearing on 60 Minutes and David Letterman. “But the truth is, in the years since Sully began flying commercial jets, piloting has become anything but glamorous. Automation has taken much of the actual flying out of the job. The airlines’ business woes have led to longer hours and lower pay. Flying is now governed by enough rules and regulations to fill several encyclopedias. The people attracted to the profession today are different, too. Where the piloting ranks were once made up of former Air Force jocks — many of them combat veterans — they are now filled

SULLYNAMA! Without experienced pilots, we will see negative consequences to the flying public. The bankruptcies were used by some as a fishing expedition to get what they could not get in normal times. The problems began with the deregulation of the industry in the 1970s. Americans have experienced huge economic difficulties in recent months, but airline employees have been experiencing those challenges and more for eight years. We’ve been hit by an economic tsunami, September 11, bankruptcies, fluctuating fuel prices, mergers, loss of pensions, and revolving-door management teams who have used airline employees as an ATM. This reduced

mercial airline pilots were like gods. It was the age of Chuck Yeager (Charles Elwood “Chuck” Yeager is a noted US test pilot. In 1947, he became the first pilot [at age 24] to travel faster than sound) and Pan Am, and the captain in uniform was a breed apart, on par with Hollywood actors and professional athletes. The job was prestigious and wellpaid; kids wanted to visit the cockpit, to grow up to fly. And on a clear but frigid January Thursday, when Sully set his plane down in the middle of the Hudson River, becoming the first pilot ever to execute a controlled water-landing in a modern commercial airliner without a single fatality, the age of the hero pilot was once again, for a brief moment, alive. Sully’s deification (and that of the crew), which began almost instantly, moved from the Inauguration to

compensation has placed pilots and their families in an untenable financial situation. I do not know a single professional airline pilot who wants his or her children to follow in their footsteps. (My) pay has been cut 40 per cent in recent years and pension has been terminated and replaced with a promise worth pennies on the dollar...”

On the bird hit “Oh, you could hear them, loud thumps. It felt like the airplane was being pelted by heavy rain or hail. It sounded like the worst thunderstorm I'd ever heard growing up in Texas. It was shocking. The only level, smooth place sufficiently large to land an airliner, was the river; the plane had no thrust and was descending rapidly. I knew I had to touch down with the wings level and the nose slightly up, and at a descent rate that was survivable.”

On praying “I would imagine somebody in the back was taking care of that for me while I was flying the airplane.”

On post-Hudson “The first few nights were the worst when the ‘what ifs’ started. One of the hardest things for me to do in this whole experience was to forgive myself for not having done something else. Something better. Something more complete.”

On the spin-off "More than one woman came up to me and said, ‘Thank you for not making me a widow,’ Or ‘Thank you for allowing my 3-year-old son to have a father.’

‘

On being a pilot

Sulenburger.qxd

3/10/2009

4:48 PM

Page 4

SPOTLIGHT mainly with civilians for whom flying is less an adventure than a job. `Twenty-five years ago, we were a step below astronauts,’ says one veteran pilot. ‘Now we’re a step above bus drivers. And the bus drivers have a better pension.’ “Sully has been in the business long enough to witness first-hand the domestication of the airline pilot. In the early days, pilots were largely uneducated farm boys or blue-collar kids who left home to become barnstormers. Some might never have spent a minute in flight school or read a flying manual. But as commercial air travel began rapidly expanding, the airlines embraced the image of the heroic captain, the distinguished man in uniform you can trust with your life. The industry paid top dollars for a new generation of service-academy-educated aviators, many of whom had been through Vietnam. This was Sully’s generation. By the seventies, as many as 80 per cent of commercial airline pilots had served in the military. “The airlines liked military pilots because the military had already tested the pilots’ psychological abilities, emotional traits, knowledge base, reaction time, and ability to make judgments. The only downside of the military background was that the pilots were, by necessity, trained to be risk-takers. “Since that time, pilot culture has done almost a 180. The maverick pilot has given way to the professional — the captain who knows how to put aside his ego and not take unnecessary risks. The change began when the military started downsizing after Vietnam and its talent pool dried up. The pilots of the military made room for a generation of pilots largely educated in flight schools offering four-year degree programmes. “The planes also began to change.

Where a Vietnam-era pilot could fly more Where a or less by stick and rudder, today’s pilots fly primarily by computer. Sully, for Vietnam-era instance, was flying the Airbus 320. On pilot could fly older aircraft, a pilot pulls back on a wheel attached to cables that literally pull the more or less by plane up. On an Airbus 320, he pulls back a joystick that sends a signal to the comstick and puter’s auto-throttle. If he’s doing it rudder, today’s wrong, the computer often corrects him, pilots fly primarily by FLIGHT FLIGHT computer ATTENDANT, ATTENDANT,

FLIGHT ATTENDANT, DOREEN WELSH Age 58, joined US Airways (Allegheny Airlines) in 1970 and has more than 38 years experience with the airline.

DONNA DENT

SHEILA DAIL

Age 51, joined US Airways (Piedmont Airlines) in 1982 and has more than 26 years experience with the airline.

Age 57, joined US Airways (Piedmont Airlines) in 1980 and has more than 28 years experience with the airline.

First Officer Jeffrey Skiles, who assisted Sully as they brought the plane down on the Hudson, made what was perhaps the most searing statement on the state of affairs of aviation in the US, and his own experience on the Hudson.

‘A JOB FOR EXPERIENCED PROFESSIONALS’

ike each and every one of my fellow professional airline pilots and flight attendants, I realise that flying a commercial airliner is a tremendous responsibility. The aftermath of this incident has brought forth in me a renewed understanding that this is a job for experienced professionals. Being an airline flight crew member, whether pilot or flight attendant, is a serious job for serious people, and I am tremendously proud to count

CRUISING HEIGHTS March 2009

myself among their number. The dedication, seriousness and professionalism with which we, in the aviation community, approach our responsibilities can be credited for the dramatic improvement of our national aviation safety record. The training, procedures and tenets of cockpit resource management (CRM), developed throughout the airline industry over the last 15 years, played a significant role on January 15. Training departments industry-wide are ceaselessly striving to identify future problems and develop procedures to combat them before they occur. A functional self-disclosure safety programme is a valuable tool to identify and track errors. Mutually agreeable solutions to make these programmes available are in

Sulenburger.qxd

3/10/2009

4:48 PM

Page 5

thrusting if he doesn’t do it soon enough, never stalling if he pulls back too hard. “Take-off has pre-programmed speeds; the pilot just moves a lever into a notch. Practically everything about the Airbus assumes the human factor to be the most dangerous thing about the flight. Incredibly, you can go on autopilot from as low as 100 feet in the air. Although some pilots worry about over-reliance on

FIRST OFFICER JEFFREY B SKILES

MAYOR OF NEW YORK, MICHAEL R BLOOMBERG

Age 49, joined US Airways (USAir) in 1986. He has a total of 15,643 flight hours.

Age 67. The media tycoon presented the crew with the keys of the city!

THE FAB FIVE: (L-R) Capt. Chesley Sullenberger III, First Officer Jeffrey Skiles, and Flight Attendants Sheila Dail, Donna Dent, Doreen Welsh and Air Traffic Controller Patrick Harten, receive standing applause.

CAPTAIN CHESLEY B SULLENBERGER III Age 58, joined US Airways (PSA Airlines) in 1980. He has a total of 19,663 flight hours.

the travelling public's interest. We must work tirelessly to maintain an unrivaled commitment to safety and professionalism. However, another component of the positive result was the vast experience of the cockpit and cabin crew. Sully and I have over 70 years of experience and 40,000 flying hours between us. New pilots in the jet aircraft of our affiliate airlines have 300 hours. When I began at US Airways, the company required several thousand hours just to gain an interview for a pilot position. It is certainly in the interest of the travelling public to have experienced crews in the cockpit. Along with Captain Sullenberger, I have concerns for the future of the airline

pilot profession. Experienced crews in the cockpit eventually will be a thing of the past. What this country has experienced economically in the last 8 months, we have experienced in our industry for the last 8 years, since 9/11. In the wake of these 8 years of financial turmoil, bankruptcies, layoffs, and revolving-door management teams, airline piloting careers have been shattered. I personally earn half of what I once earned, and I have lost my retirement to a promise that will pay pennies on the dollar. Many pilots like Captain Sullenberger and myself have had to split their focus from the airline piloting profession and develop alternative businesses or careers. I myself am a general contractor. For the last 6 years, I have

CRUISING HEIGHTS March 2009

technology and the distractions it can cause, most like a tricked-out plane. Still, there’s no getting around the fact that automation has taken control away from pilots. It’s the same with regard to air-traffic controllers and airline operations. Pilots used to have to navigate themselves; now it’s all done with GPS systems. Pilots used to have more discretion over take-off times and maintenance decisions; now they’re frequently overruled. “The state of the airline industry has also diminished pilots’ status. The modern era of airline mergers, and bankruptcies and rising fuel costs, has meant extended flying schedules, wage freezes, and pension cuts. Today, starting salaries at some airlines are as low as $25,000. Sully’s retirement plan was taken away during one airline’s bankruptcy, and, over two decades, his pay has increased by just 6 per cent. “Pilots have a hard time making a case worked 7 days a week between my two jobs just to maintain a middle class standard of living. The more than thirty thousand people who work at US Airways are proud of the work they do each day, and of their accomplishments. To many of us, the near total devaluation of our professions by our management is heart-felt. In the last several years, the only constant I see is the everincreasing compensation levels of our management. When I started in this industry, there were aviation dynasties. Entire families would be employed in aviation as pilots, flight attendants, mechanics or agents. An aviation career was something people aspired to their entire childhood, as I did.

Sulenburger.qxd

3/10/2009

4:49 PM

Page 6

SPOTLIGHT

Now I know of no one who encourland at airports, we are proud ages their children to enter the airthat the Hudson River landing line industry. displayed what well-trained, From our perspective, it is clear professional pilots and flight that the current state of the manageattendants can do when faced ment/ labour negotiation process is with tremendous adversity. We broken. Negotiations drag on for are all very gratified and years in stagnation, with little clarimoved that our colleagues in ty for those of us who have spent the flying industry have seen our entire lives training to be on the this incident as a positive front lines of safety for the Amerireflection of themselves and can flying public. We aren't asking our shared profession. for special privileges, but for a level playing field…... there is not a THREE CHEERS: US Airways flight 1549 Capt. Chesley B Sullenberger III (First officer Jeffrey B. Skiles balance in the negotiating process, (seated, centre) and First Officer Jeffrey B. Skiles (seated, right) receive a made these comments at the standing ovation on Capitol Hill in Washington, Tuesday, February 24, 2009. and the state of the airline piloting Congressional hearing before profession is proof. lied around us after the incident. While Cap- the House Transportation and InfrastrucOur colleagues in this industry have ral- tain Sullenberger and I generally prefer to ture Committee.)

IT WAS LIKE BEING HIT BY A BUS!

Controller Patrick Harten’s riveting account of the 3.5 minutes —- during which he spoke with the crippled jetliner after the bird strike at an altitude of 2,750 feet — before the Congressional Committee on Transportation and Infrastructure was so electric that Sullenberger said at the end that he was ‘moved’ by his testimony.

“But when it was over, it hit me hard,” he said. “It felt like hours before I learned about the heroic water landing. Even when I learned the truth, I could not escape the image of tragedy in my mind. Every time I saw the survivors on television, I imagined grieving widows. It's taken me over a month for me to be able see that I did a good job. I was flexible and responsible, and I listened to what the pilot said, and I made sure I gave him the tools he needed. I was calm and in control.” Harten said he has not worked since the splash-down, but he is returning after 45 days of paid leave. “While it may take time for me to regain my old confidence, I know I will get there,” he said.

Harten testified that he had worked emergencies before, but nothing prepared him for a pilot's radio call saying he planned to splash down in the river after striking birds on January 15. When Sullenberger said he couldn't make it either back to LaGuardia or to Teterboro Airport in New Jersey and would ditch in the Hudson River that separates New York and New Jersey, Harten testified, “I believed at that moment I was going to be the last person to talk to anyone on that plane alive.” “I simply could not wrap my mind around those words,” Harten said. “I thought it was his own death sentence.” Afterwards, Harten said he told his wife, “I felt like I had been hit by a bus.”

CRUISING HEIGHTS March 2009

about the potential effects of all of these changes, because the airlines’ safety records are so impressive at the moment. Some experts worry that today’s pilots — with their lack of military experience, their aversion to risk, their reliance on automation — are perhaps less capable of improvising in an emergency. They may be the right men for providing the greatest margin of safety for the greatest number — and in a world in which 80,000 planes take off and land in the United States every day, having that kind of pilot corps makes sense. But what if you are one of the unlucky few who wind up in a plane that’s in trouble? On that plane, you may want the pilot who dodged enemy fire over Vietnam, the seat-of-the-pants stickand-rudder guy. “It was 3:29. Sully saw a boat on the river. He wanted to be close to that boat, so passengers could be pulled from the wreckage. He was improvising. Without the use of his engines, he maneuvered the flaps just so to control his speed — enough to minimise impact, but not so much that the plane would drop like a 50tonne rock. And with 90 seconds left, he made his first communication to the passengers of Flight 1549. “Brace for impact.” One passenger later recalled that one critical element that afternoon was the fact that Sully didn’t announce “Brace for impact” until it was absolutely necessary. “My feeling is he waited that long to keep people from freaking out. By saying it that close to impact, all you could do was put your head down. If that was his choice, I thought it a good one,” the passenger said. When the pilot got official confirmation that everyone had survived, “I felt like the weight of the universe had been lifted off my heart,” he said.

Document1

4/17/2008

11:30 AM

Page 1

Airshow.qxd

3/10/2009

4:57 PM

Page 2

SPECIAL REPORT

THOSE MAGNIFICENT

FLYING MACHINES The seventh edition of Aero India — with its enthusiastic response and high level of attendance — showed that the country could take its rightful place among top aviation nations of the world. The show not only saw a wide range of participants from around the world, but also concluded some important business deals. Watch out for the next show from February 9 to 13 in 2011! lumes of white, saffron and green painted the skies over Air Force Station Yelahanka, Bengaluru. The 7th Aero India, organised by the Ministry of Defence, Government of India, and managed by the Confederation of Indian Industry (CII), was well under way. Coming as it did on the back of the global economic downturn, it was indeed a valiant effort and one that deserves special mention. Aero India has carved a niche for itself globally, as a premier aerospace exhibition, with six successful editions organised between 1996 and

SCINTILLATING SHOW: It was a moment to celebrate Indian aviation industry.

CRUISING HEIGHTS March 2009

2007. The 2009 show aimed to bring, under one roof, exhibitors from all around the globe to showcase the best in aviation. The show included both flight and static displays of a wide range of civil and military aircraft from leading manufacturers, vendors and suppliers. Aero India 2009 sought to provide an ideal window of opportunity for companies to not only network with the Indian industry, but also to benefit from the sharing of expertise in the fields of R & D production and product support with other global players. The air show — now regarded as

Airshow.qxd

3/10/2009

4:57 PM

Page 3

one of the top in the world — proved to all that India had indeed taken off, and Defence Minister A K Antony went on to assert that India would not cut defence expenditure or compromise on its acquisition programme despite the recession. “Despite the economic recession, there is no question of scaling down our defence expenditure or compromising with our ongoing acquisition programmes,” he said. The minister went on to point out: “Our defence expenditure at present is about 2.5 per cent of GDP, in keeping with our security interests…At the politicosecurity level, India has always been recognised as a responsible power and a stabilising factor in this region in the face of various security challenges originating from different sources around us,” he said. In a bid to boost India’s worth in these trying times, Antony said that Aero India 2009 would showcase the country’s emergence as an attractive

‘Despite the economic recession, there is no question of scaling down our defence expenditure...’ CRUISING HEIGHTS March 2009

market and a key outsourcing hub for global aerospace firms. “It (India) fulfils all the pre-requisites — low cost, skilled engineers, good organisations, software and technology. I am confident that Aero India 2009 will provide ample opportunities to domestic and international players in the aerospace and aviation sectors to tap the market and the business potential for mutual benefit.” It was not only the world that had its eyes on Yelahanka Air Force base for five days in February. According to the organisers, the show saw more than two lakh visitors. More than

Airshow.qxd

3/10/2009

4:57 PM

Page 4

SPECIAL REPORT

those attending the show, what was more important was the boost the defence and defence-related industries received. With around 600-odd business-to-business (B2B) meetings — of which 350 were between Indian and foreign companies and the remaining between Indian business houses — the show saw a wide range of business deals, from software and hardware to radar systems, and a whole lot more. The business meets ended in MoUs

With around 600odd business-tobusiness (B2B) meetings, the show saw a wide range of business deals

A shot at flying

ce shooter Abhinav Bindra discovered the thrill of flying — literally — at the speed of a bullet. The country’s first Olympic gold medallist, Bindra was invited to fly in a Lockheed Martin fighter jet F-16IN at the air show. For the 45-minute flight, Bindra took the co-pilot’s seat along with a highly experienced test pilot from Lockheed Martin. And before the flight, he had to undergo a medical fitness test and also get a ground briefing. As he slid into the co-pilot’s seat in the flying machine, Bindra became a

Olympic gold medallist Abhinav Bindra

member of an exclusive club of eminent personalities who have flown fighter jets. Among them are Ratan Tata and former President APJ Abdul Kalam. While Tata flew in an F-16 during the last Aero show in 2007, the former President had taken off in an Indian combat jet. Following Bindra into the air this year were the country’s lone cosmonaut Wing Commander (Retired) Rakesh Sharma, and Congress MP and industrialist Naveen Jindal. Both flew in Boeing’s F/A18 Super Hornet fighter jet. The Super Viper, as the F-16IN is

Naveen Jindal (R) at Aero India 2009

CRUISING HEIGHTS March 2009

being signed. Among the important ones were those signed by Agustawestland, a Finmeccanica company, and Tata Sons, for the formation of an Indian joint venture company which would establish a final assembly line for manufacture of AW-119 helicopters in India. A Tata Group company, the Tata Advanced Materials Ltd (TAML) went through a business agreement for manufacture of structural composite components with Saab. Aero India also saw India’s aviation major Hindustan Aeronautics Limited handing over the first batch of five Advanced Light Helicopters — Dhruv — to the Ecuador Air Force. Bharat Electronics Ltd (BEL) and Boeing signed a MoU to develop an Analysis and Experimentation Centre in India to offer customers the “ability to make better informed decisions” in modernising India’s defence forces. Another major business decision was announced by BEML for the estabotherwise known, has created a special place for itself as a multi-role fighter. It has earned praises from fighter pilots the world over for its performance and reliability. Orville Prins, Vice President, Business Development-India of Lockheed Martin, speaking about the invitation to the ace shooter, said it had been done with a lot of thought. “It is a perfect fit. Lockheed Martin and Abhinav share the same commitment to integrity, and the F-16IN and Abhinav have achieved absolute excellence in performance.” For the shooter, it was indeed an experience of a lifetime. Before the flight, he said that he had heard about the adrenalin rush when the aircraft sor-

1st Indian Astronaut Sq Ldr Rakesh Sharma

Airshow.qxd

3/10/2009

4:57 PM

Page 5

Showing off A

ero India, a biennial air show and aviation exhibition, has always been held at Bengaluru’s Yelahanka Air Force Station. Organised by the Ministry of Defence, it is held in association with the Defence Research and Development Organisation (DRDO), the Indian Air Force (IAF), the Department of Space and the Union Ministry for Civil Aviation. The first Aero India was held in 1996. Since then, the show has attracted the attention of stakeholders in the aviation business the world over. The last show — the seventh in the series — held from February 11 to 15, 2009, saw 592 exhibitors from more than 25 countries participating. Over the last few years, Aero India has come to be recognised as one of the most important and largest military aviation expositions in the world. It is no surprise that the Mikoyan MiG35 and F-16IN Super Viper have made their first appearances at Aero India in 2007 and 2009, respectively. Of the 592 exhibitors, there were 303 from 25 countries and 289 from the Indian sub-continent, 31 firms each from Germany and France, followed by Britain (26), Russia (24), the US (22), Italy (19), Belgium (17), Israel (11) and Australia (10). Among the top functionaries at the show were defence ministers from eight nations — France, Bolivia, the Maldives, Mongolia, Oman, Peru and Surinam — and high-level delegations from 40 countries including China, which was represented for the first time by a 10-member delegation.

Sarang Aerobatic Team displays its skills at the air show

tied in the air. He was looking forward to the experience, he said. “I guess it will be an encore of what I felt when I hit the target at the Olympics.” The F-16IN Super Viper, according to a statement from Lockheed Martin, was a unique new fighter, sharing a heritage with the world’s only fifth generation fighters: the F-35 Lightning II Joint Strike Fighter and the F-22 Raptor. “Evolutionary integration of fifth generation technologies makes the F-16IN the most advanced fourth generation fighter in the world today,” the statement added. In its bid to hard-sell the combat jet, the company emphasised that the F16IN had been manufactured specially to meet or exceed all of the country’s medium multi-role combat aircraft (MMRCA) requirements. The company statement went on to say that the F-16IN was the perfect choice for the Indian Air Force (IAF). Along with the Super Viper, there were four Eurofighter Typhoons, Germany’s most advanced fighter aircraft. It was a first for the German Typhoons, as well as for the German delegation, lead by Deputy Commander 2nd Air Division, Brigadier General Harald Riedel.

Defence Minister A K Antony addressing the media at the Aero India 2009

Shows like the Aero India can either act as a facilitator or create a competitive spirit among the country’s industries to produce top-ofthe-line products CRUISING HEIGHTS March 2009

lishment of an aerospace manufacturing division. Russian Helicopters JSC, along with its Indian joint venture partner Vectra Group, also announced the launch of an MRO (maintenance, repair, overhaul) facility near Chandigarh to service Russian-made civil aircraft. However, what attracted the most attention was the push by six companies, which want the Rs 40,000-Rs 45,000 crore contract to supply 126 fighter jets to India. Leading the pack was Lockheed Martin and Boeing from the United States, Russia’s MiG, France’s Dassault, Sweden’s Saab and the EADS consortium of British, German, Spanish and Italian companies. It was, however, on the sidelines of Aero India that the steps the country’s defence production would have to take in the near future were underlined. Speaking at the inaugural seminar, Defence Minister AK Antony said that the growth in indigenisation of defence production had been “very, very slow”. The country, he said, continued to import over 70 per cent of its defence equipment. In such circumstances, shows like the Aero India can either act as a facilitator or create a competitive spirit among the country’s industries to produce top of-the-line products.

central sprad up.qxd

12/15/2008

4:03 PM

Page 2

NCE HITS AIR DECCAN EXPRESS SECTOR BOOMS

Rs 6

June 2008

Rs 60

FIREWALKERS INC

As fuel prices touch the stratosphere, airlines owners get edgy. It’s like walking on hot coals: they are cutting costs, dropping routes and wondering what to do next

October 2007

June 2007

March 2008

September 2007

Rs 60

India’s best known aviation monthly from Newsline Publications Pvt. Ltd.

CRUISING HEIGHTS The right stuff, all the time, on time Get your copy today. Call 91-120-4145555 or SMS SUB CH at 53030

central sprad up.qxd

12/15/2008

4:03 PM

Page 2

NCE HITS AIR DECCAN EXPRESS SECTOR BOOMS

Rs 6

June 2008

Rs 60

FIREWALKERS INC

As fuel prices touch the stratosphere, airlines owners get edgy. It’s like walking on hot coals: they are cutting costs, dropping routes and wondering what to do next

October 2007

June 2007

March 2008

September 2007

Rs 60

India’s best known aviation monthly from Newsline Publications Pvt. Ltd.

CRUISING HEIGHTS The right stuff, all the time, on time Get your copy today. Call 91-120-4145555 or SMS SUB CH at 53030

cover story

final new change montage.qxd

3/13/2009

12:36 PM

Page 2

JUNE

Restructuring of Delhi and Mumbai airports discussed by Group of Ministers.

JULY

NOVEMBER

DECEMBER

New Civil Aviation Secretary Ajay Prasad takes over from K Roy Paul; Concession agreement signed with BIAL for Bangalore International Airport Ltd.

Naresh Chandra Committee report submitted; European Commission signs two-year extension for the EU-India civil aviation project; First meeting of the newly constituted Consultative Committee of Civil Aviation held.

Concession agreement signed with Hyderabad International Airport Ltd for new airport at Shamshabad; Civil aviation policy with various Ministries and economic regulator is under consideration and a proper Bill is under circulation.

THE

2004

COVER STORY

PRAFUL YEARS

The civil aviation sector has been on a roller coaster ride ever since Praful Patel took over the portfolio five years ago. He moved with gusto, thinking out of the box. Result: Indian aviation moved at a blistering pace, creating quite a reputation for itself the world over. But there are many who have pointed fingers at Praful Patel for favouring his ‘friends’. CRUISING HEIGHTS takes a close look at the Praful Patel years.

lmost a year into his tenure, a friend said that he was a bit surprised that the Secretary Civil Aviation (at that time Ajay Prasad) was travelling to relatively unimportant assignments like leading the Indian delegation to the bilateral talks in New Zealand. Praful Patel looked up from the stack of sheets that he was signing and said: “Kya farak padta hai bhai. Let him travel wherever he wants to. Jo hum keh rahe hain woh to ho raha hai na?” It was typical Praful Patel. Uncomplicated, to the point, and crystal clear in his objectives. As far as he was concerned, Prasad could fly first class three times a day to Timbuktu, so long as he was at the forefront of implementing ‘his’ agenda. And that, for him, was the

prime consideration. As he once jokingly said: “I don’t go into micro details, it’s the macro issues that I am bothered about.” That was 12 months down the line. When he took over as Civil Aviation Minister in May 2004, his first big challenge arrived less than four weeks later. Finance Minister P Chidambaram presented the maiden UPA budget and announced that the exemption on ‘withholding tax (that helped avoid double taxation and provided a route for companies to lease aircraft)’ would go. It was a move that sent tremors up the spine of most airlines (excluding Jet Airways which at that point had its own aircraft). Suddenly, there was the prospect that they would be paying a lot ( Contd. on page 46)

CRUISING HEIGHTS March 2009

2005

cover story

final new change montage.qxd

3/13/2009

12:36 PM

JANUARY Praful Patel and US Transportation Secretary Mineta sign historic Indo-US open skies agreement; Ministry of Civil Aviation issues guidelines for Indian scheduled carriers on international routes; During first 10 months Aviation registers growth of 17 per cent; NoC granted to Indigo, Kingfisher and Go.

Page 3

FEBRUARY India and Afghanistan sign an MoU on civil aviation sector; Aviation records double-digit growth.

CRUISING HEIGHTS March 2009

SEPTEMBER Ministry invites suggestions and comments on the role and functioning of the DGCA; Indian Airlines fleet acquisition cleared.

centrespread final for new cd.qxd

3/13/2009

12:38 PM

Page 2

COVER STORY

FLIPFLOP 1 2 3 4 5 6

CRUISING HEIGHTS March 2009

Circulates Naresh Chandra Committee report across the board for feedback to finalise the Civil Aviation Policy.

Says repeatedly that there will be greater synergy between Air India and Indian Airlines and there is no question of a merger.

Stoutly rules out FDI by foreign airlines wanting to invest in Indian owned airline companies.

Puts in cold storage MoUs by Indian Airlines and Singapore Airlines for a JV in Ground Handling and MRO.

Says more than one airport possible in major metros.

Announces that Memphis-like cargo hub will be set up at Nagpur; forms a committee, ‘Civil Aviation Core Group’ (CACG).

1 2 3 4 5 6

There is never any action on the Naresh Chandra Committee report. The Civil Aviation Policy remains on paper. “It’s dynamic and dependent on case to case,” asserts the Minister.

First, Indian Airlines becomes Indian, and then it loses its identity to be merged with Air India. The tremors are still being felt.

Changes his mind on FDI investments. Believes beleaguered Indian airline companies require infusion of funds from foreign counterparts.

Air India signs JV for Ground Handling with Singapore Airlines; an MRO with Boeing is signed in Nagpur and another with EADS is in the pipeline.

Changes his mind: Greater Noida airport put on the back-burner and Begumpet and Bengaluru airports stop operations.

Civil Aviation Core Group (CACG) has not met for more than a year but the Nagpur project is limping ahead.

CRUISING HEIGHTS March 2009

centrespread final for new cd.qxd

3/13/2009

12:38 PM

Page 2

COVER STORY

FLIPFLOP 1 2 3 4 5 6

CRUISING HEIGHTS March 2009

Circulates Naresh Chandra Committee report across the board for feedback to finalise the Civil Aviation Policy.

Says repeatedly that there will be greater synergy between Air India and Indian Airlines and there is no question of a merger.

Stoutly rules out FDI by foreign airlines wanting to invest in Indian owned airline companies.

Puts in cold storage MoUs by Indian Airlines and Singapore Airlines for a JV in Ground Handling and MRO.

Says more than one airport possible in major metros.

Announces that Memphis-like cargo hub will be set up at Nagpur; forms a committee, ‘Civil Aviation Core Group’ (CACG).

1 2 3 4 5 6

There is never any action on the Naresh Chandra Committee report. The Civil Aviation Policy remains on paper. “It’s dynamic and dependent on case to case,” asserts the Minister.

First, Indian Airlines becomes Indian, and then it loses its identity to be merged with Air India. The tremors are still being felt.

Changes his mind on FDI investments. Believes beleaguered Indian airline companies require infusion of funds from foreign counterparts.

Air India signs JV for Ground Handling with Singapore Airlines; an MRO with Boeing is signed in Nagpur and another with EADS is in the pipeline.

Changes his mind: Greater Noida airport put on the back-burner and Begumpet and Bengaluru airports stop operations.

Civil Aviation Core Group (CACG) has not met for more than a year but the Nagpur project is limping ahead.

CRUISING HEIGHTS March 2009

cover story

final new change montage.qxd

3/13/2009

12:37 PM

Page 4

2006

COVER STORY

FEBRUARY

JUNE

NOVEMBER

AUGUST

Landmark decision to restructure and modernise Delhi and

Mumbai airports through Public Private Partnership in the joint venture mode finalised.

MOU signed between FAA and Civil Aviation Ministry; Indo-US summit held; Government forms flying training institute in Gondia.

Committee on Infrastructure clears modernisation of 35 nonmetro airports by Airports Authority of India.

Boeing names Nagpur as the site for its MRO in India.

STIMULATING THE RIGHT ENVIRONMENT Capt. G R Gopinath feels the aviation sector benefited immensely from Praful Patel’s excellent execution abilities.

Praful Patel walks the talk... he delivers what he promises and he promises what he believes is in the best interest of the future of the industry. His tenure will go down in history as the most impactful! He has been the catalyst of the reformation that we have experienced in the aviation industry. He got down to business pretty early in his tenure at the Civil Aviation Ministry, with the increase in FDI from 40 to 49 per cent, that gave him the requisite push to go ahead. Praful Patel’s ability to understand aviation, take quick decisions and execute them, stem from his learnings of running his own business, and therefore understanding competition, as well as his association with the ministry over a long period of time — much before he was given the mantle. There are ministers who take decisions but do not follow up on execution. His ability to achieve both was commendable. I am not saying that I agree with all his decisions, but the ability to take decisions, then with our bureaucracy to execute them, is a big challenge, which he seemed to do effortlessly. He has been able to see the industry both from the opportunities that open skies provided to the private sector, as well as the crying need from the government to provide and upgrade the infrastructure. He dabbled with both — understanding the needs of the airlines and the limitations of the government, he circumvented the system to ensure plans were implemented. His shrewd ability to understand what needs to be done, negotiate between party lines to garner consensus and, most importantly, get the babus-bureaucrats to execute the decisions, throws up learnings for ministers running a government with a fractured mandate. The long delayed procurement of new aircraft for the national carrier is a classic example. The fleet augmentation of Air India was languishing for years; between the ministers and the bureaucrats it never saw the light of the day, with competition prodding ahead before Praful Patel took the bull by its horns and went ahead and got it going . The airport modernisation took place during his regime — though mooted by the NDA. Getting six of the largest revenue-earning airports to be privatised to bring better facilities and private investment against variable odds is a challenge which few have attempted but none have succeeded earlier. Though the new Bengaluru airport is woefully inadequate to even handle the present needs, the fact is that the airports’ privatisation has moved from a public sector monopoly to a private sector monopoly (even more challenging), and I am hoping the next Civil Aviation Minister will be able to tackle this. Though, early in his tenure, when Air Deccan was taking shape and threatening the existing full service carriers with its low fares, he was close to succumbing to the entry barrier suggestion from them, he saw reason soon. He would take some time to understand a suggestion, but once he had taken a decision, he got down to executing it with speed. I had rallied for multiple policy changes, which were in line with international standards, but short-sighted policymaking made it most difficult for the aviation industry to grow. If he were to come back as a Civil Aviation Minister again, my wish list from him would be to work out a way to have multiple airports operational in a city, appoint the Airport Economic Regulatory Authority and upgrade infrastructure. (Capt. GR Gopinath heads Deccan Express Logistics)

‘

CRUISING HEIGHTS March 2009

more for their aircraft, their economies would go haywire, and they all desperately petitioned Praful to do something and talk to the FM. It was still early days and Praful Patel then wasn’t the same man that one accosts today. He still wasn’t a master of the subject, though he had spent his entire Parliamentary life (in the Lok Sabha and the Rajya Sabha) in the Consultative Committee of the Civil Aviation Ministry. He was nervous, didn’t entirely understand the withholding tax concept, but had the common sense to quickly assimilate the intricacies of the issue and had it deferred for a good two years. In that first meeting in early July, he also spoke to the FM for equity infusion into Air India and Indian Airlines. Well, as far as Air India and Indian Airlines go, it hasn’t been such a pleasant story. IA is no more a blip on the radar, and has been swallowed by the Maharaja, whose descent into chaos has to be seen to be believed. Its market share is going down by the day. In the end, the decision to merge two lossmaking airlines into one gigantic unwieldy loss-making monolith may be the biggest blunder that Praful Patel made. It’s an albatross around his neck, and these days he isn’t even concerned about what happens to AI. In fact, five years down the line, they are yet to receive any infusion of funds from the sarkar. In hindsight, one could say it was a monumental decision of folly to merge the two airlines. So, if Air India has been such a monumental failure, the airlines together are losing close to Rs 8,000 crore, the private airports are crying hoarse for relief, the industry is facing a terrible glut — both in terms of fleet and personnel — and there are fewer people taking to the air, then why is Praful Patel viewed as one of the most dynamic Civil Aviation Ministers this country has ever produced? In any other Ministry, he would have been taken to the cleaners a long

3/13/2009

12:37 PM

Page 5

FEBRUARY

MARCH

MAY

Praful Patel named Person of the Year by T3 and industry associations; Minister Patel meets Air India and Indian senior management to reassure everyone that the merger would not dislocate anyone; Foundation stone of new integrated terminal of Delhi airport laid by Sonia Gandhi.

The Cabinet approves merger of public sector carriers Indian Airlines and Air India. The empowered Group of Ministers, headed by Pranab Mukherjee, had on February 21 given its approval to the merger of the two airlines into a new single company.

Plans to modernise Kolkata and Chennai airports through the PPP model receive a jolt with Leftists and Tamil Nadu Chief Minister M Karunanidhi demanding Airports Authority of India take up the modernisation work.

time back. But talk about Civil Aviation, and the general inference is that here is a man who has been transformational, has helped take Indian aviation to the next level, and has been nothing if not magical (just look at the accompanying stories and you will understand what we are talking about), and will figure among the top three ministers, in terms of the performance of the UPA government. Frankly, Praful Patel was the right man at the right place at the right time. Notwithstanding his achievements — that we shall discuss later — there can be no denying that he took over as Minister when the sector was hot, red hot. That maverick, Captain Gopinath had launched Air Deccan a few months earlier, and the country’s first low-cost airline only became an accelerator for a sector that was on a great upward spiral. He delightfully named it the Udipi Hotels of the sky, offered Rs one tickets, and said that he wanted a billion people to fly. It was in this euphoria that Praful Patel found himself when he took over as Minister. Why, in the first 10 months of his regime, air traffic grew by a whopping 22 per cent! Air Deccan was followed by SpiceJet in 2005, Kingfisher Airline the same year and Indigo in 2006. Spicejet and Indigo were both LCCs and offered fares at a much cheaper rate than the full-service or the legacy carriers like Air India, Jet and Kingfisher. And air tickets were competing with upper class railway fares, with airports looking more like railway stations. So, if the sector was moving ahead on its own steam, where did Praful Patel really leave his mark? “I think the first big impact was the fleet acquisition. Both Air India and Indian Airlines had been lobbying unsuccessfully for years for fresh planes. Somehow, their proposals lost steam along the way. But Praful Patel successfully pursued both acquisition plans to a successful completion in late

MOMENTOUS FIVE YEARS FOR AIR INDIA At the end of five years of the Praful Patel ministry, Raghu Menon talks about the various milestones achieved by Air India, which is comfortably positioned on the path of record growth and expansion.

The last five years have been truly historic for the Indian civil aviation industry, as it attained all-round spectacular progress coinciding with the economic growth that India achieved; and the world took note of it. The recent years have been momentous for Air India too. The country’s national carrier recorded several firsts. Due to the initiative taken by government in approving the acquisition of aircraft, an order for 111 new aircraft was placed on Boeing and Airbus. This was a major necessity of the national carrier. The sustained economic growth achieved by India also unfolded opportunities for the cargo business. Air India, by converting some of its old aircraft into freighters, has increased cargo capacity and is set to become an important player. Another major milestone was the government’s decision to merge India’s two national carriers, Air India and Indian Airlines. The merger also led to the creation of six Strategic Business Units, so that the potential in various areas of aviation could be harnessed. As a consequence, joint ventures are being entered into with Singapore Airport Terminal Services Ltd (SATS), specialists in ground and cargo handling services. The new and growing fleet, and ongoing expansion of network, also helped Air India get an invitation for joining Star Alliance. (Raghu Menon is Chairman & Managing Director, NACIL.)

‘

SUSTAINING THE MOMENTUM Anil Khanna finds the government initiatives to promote the air cargo industry extremely favourable, but laments the inadequacy of the country’s infrastructure.

Express cargo today has come a long way, and plays an important role in trade and distribution because of the timesensitive nature of many goods, and the increasing demand for reliability and security. Domestic air cargo in India has grown at a CAGR of 11 per cent for the last five years. Ours is still not a mature market; however, with the development and increase in the manufacturing sector, India is emerging as an important sourcing hub for many industries. Infrastructure bottlenecks are one of the major constraints today that are holding back the industry. We welcome any step in its improvement. The government has announced huge investments for improvements in infrastructure, including modernisation and building of new airports, which is a big leap forward and a welcome step. The Cabinet decision to increase FDI cap from 49 to 74 per cent in the air cargo sector is expected to attract more companies. Overall, we are glad that the government has realised the potential of cargo industry in India and taken up the issue of infrastructural challenges seriously. The government has robust plans in place, which would enable us overcome bottlenecks and provide us with a greater opportunity to facilitate trade and commerce in the country. (Anil Khanna is Managing Director, Blue Dart Express Ltd.)

‘

CRUISING HEIGHTS March 2009

‘

2007

final new change montage.qxd

‘

cover story

final new change montage.qxd

3/13/2009

12:37 PM

Page 6

2007

COVER STORY JUNE

SEPTEMBER

AUGUST

Vision 2020, New Civil Aviation Policy (NCAP), formulated and sent to Group of Ministers; Aviation Cooperation Programme signed with USA.

India reelected as member for three years to ICAO General Assembly at Montreal — India has been consistently holding this position since 1944; Government approves plan for modernisation of 35 non-metro airports by AAI.

Air India gets ready to ward off competition with its new planes, Boeing 777LRs.

PUTTING INDIAN AVIATION IN NEW LEAGUE As a man of many ideas, Praful Patel has taken the Indian aviation industry to a new level, feels Ram Kohli.

Praful Patel has done an extremely incredible job. As a tour operator, I can say with confidence that his policies have helped in the Incredible India campaign. The open skies policy has been a great success; earlier there used to be shortage of seats to and from India, but the situation has changed. Praful Patel is probably a Minister with many ideas. He has been responsible for improving the airport infrastructure, helping airlines in expanding their fleet, making air travel affordable on many routes. Apart from Air India, some other domestic airlines have started flying abroad, which has put India in a different league. There are some who feel that that Praful Patel has been partial to some circles at the cost of being unfair to many others. These are debatable points and different people say different things for different reasons. The fare war which has started among the LCCs is doing more damage to these airlines, as well as the country’s image. The merger of Indian Airlines and Air India has decreased the market share of our two national carriers, which everybody is aware of. People wonder if the merger was the right decision. The political parties who are not in power now do not agree that Praful Patel did a great job. In case the UPA does not come back to power, the private airlines in India will have to change various things, which will change the whole industry and scenario in India’s civil aviation industry. (Ram Kohli is Chairman & Managing Director of the Creative Travel Pvt Ltd.)

‘

INDIA NOT ‘SHINING’ FOR AVIATION INDUSTRY The country’s aviation and travel industries have failed to get the necessary government support, says Rajji Rai.

The airline industry is one of the fastest growing sectors of the Indian economy. The advent of LCC has revolutionised aviation like nothing before, and the spurt in air travel has given a huge boost to ‘India Shining’. The UPA government’s aviation policies did tackle some of the challenges it faced. They predicted (five years ago) that airlines traffic would grow at about 20 per cent a year, which did take place, and there is no doubt that Praful Patel’s vibrant new policies brought in some new regulations and strategies that have helped the aviation industry. In June 2008, some international airlines and some of our domestic ones said they were doing away with commissions w.e.f. November 1, 2008, putting the entire travel trade in a tizzy. Neither Praful Patel nor the country’s major travel associations, like TAAI, TAFI, IATO, IAAI, ADTOI, or ETAA, were consulted. But the tide seemed to be turning with the travel agents fraternity meeting the Civil Aviation Minister on February 23. Patel was very positive in the meeting and assured the fraternity that he would try and find a solution very soon. He then directed them to DGCA Naseem Zaidi, who too was very positive and promised to make a note for the Minister on this meeting in a day. (Rajji Rai is Vice President, Travel Agents Association of India)

‘

CRUISING HEIGHTS March 2009

2005, after having both airlines revisit their plans. It was a special moment,” said one former civil servant who was involved in the process, and added that almost week after week he would chase them for an update on how the acquisition process was shaping up. It was the first instance that he sent the message that he had the stamina and the competence to pursue his objective through the system. Another observer at Rajiv Gandhi Bhawan believed that “it was not just the acquisition,” but the entire process of ‘pushing hard on the modernisation of metro airports, beefing up the infrastructure, development of the non-metro airports’, that had a huge impact on the public imagination. “For them, the airports were looking like railway stations and it became fashionable to state how many minutes one had spent hovering over Delhi waiting to land. Everything was attributed to Praful Patel,” the observer added. He was viewed as a man of action, a pleasant-mannered bloke who spoke sensibly and confidently. That was the image. That he was the right man at the right place was evident from the fact that two Greenfield airports — Bengaluru and Hyderabad — were cleared in his first seven months in office. The first, Bengaluru, was approved less than two months after he took over, and the second, Hyderabad, was cleared in December 2004. “Chandrababu Naidu had moved heaven and earth for a new airport for Hyderabad. By the time it became a reality he was out of office, and so was the NDA government led by Vajpayee. And, Bengaluru too had travelled the full distance of the bureaucratic labyrinth under the previous regime, and was just right for the picking when the UPA arrived. But Praful was viewed as the man who had pushed for it, although full credit to him for making sure that both projects came up in the 36 months they were given to get the airport

cover story

final new change montage.qxd

3/13/2009

12:37 PM

Page 8

2008

COVER STORY

JANUARY

FDI in air cargo raised from 49 to 74 per cent; Praful Patel’s dream project, the Nagpur hub, is cleared.

MARCH

MAY

JUNE

Greenfield airports at Hyderabad and Bengaluru (Trial) open.

Praful-Montek spar over facilities to common passengers at Delhi airport. Reason: modernisation plans were not up to the mark, alleged Planning Commission Deputy Chairman Montek Singh Ahluwalia. Praful Patel hits back.

ATF prices hit aviation industry. Minister Patel meets airline CEOs and later the Prime Minister.

Hyderabad airport

Bengaluru airport

‘NOT A MAN TO BE IGNORED’ Punam Singh credits Praful Patel as the man responsible for slowly making India a force to reckon with in global aviation.

Love him or hate him, you simply cannot ignore Civil Aviation Minister Praful Patel’s contribution to the Indian skies and beyond in the last five years. One of the new breed, he is well-groomed, educated and informed, articulate, a spiffy dresser and someone who has virtually single-handedly been responsible for opening up the Indian skies. Though the Civil Aviation sector was opened up to private sector players around 1993, during late Madhav Rao Scindia’s tenure, it was in 2004, when the UPA appointee Praful Patel took charge of the aviation controls, that the ministry was piloted through sweeping changes for the next five years. Praful Patel can be credited with being the main architect of the Indian open skies policy that has borne visible fruit. Flight schedules have increased manifold to over a dozen destinations, chief amongst them being London. From only 18 direct weekly flights on three carriers between India and London in 2006, we currently have over 135 direct weekly flights from a dozen Indian hubs on five carriers. That is a capacity multiplication of seven-and-a-half times! Initially, like his predecessors, Patel was against FDI by foreign carriers in the Indian airline industry, primarily because he wanted a self-sufficiency in the critical field of attaining a fleet of around 1,000 aircraft for the Indian carriers. This had almost been achieved, along with an astonishingly sustained nine per cent plus GDP growth, till the third quarter of 2008. Then, however, the oil crisis erupted and fuel prices increased, followed by the global meltdown, with recession striking the strongest economies of the world. Economies, development plans, hopes, aspirations, stock markets, MNCs came crashing down like the veritable house of cards, and India was also affected. Airlines virtually went berserk in the last six months on various counts. Increase of air-fares, zero commission issue with the travel agents, lower passenger traffic, rescheduling of flights, some cancellations of aircraft bookings, introduction of rock bottom fares to encourage people to travel, decrease in fuel prices, withdrawal of discounted fares, giving in to the travel agents demand of three per cent IATA commission, re-instating regular fares, dealing with negative travel advisories for India — it’s been a recurring disaster zone with small breathers to enable the industry to gear up for the next assault. Given the fragile global situation, which is slowly crawling back to “normal”, Praful Patel has, not surprisingly, reversed his earlier stand and become pro-FDI by foreign airlines in Indian carriers, so as to counter the severe financial crisis where all the public equity companies seem to have disappeared. Some may say it’s a little late in this respect, considering that the Singapore Airlines-TATA Airline project was stalled at the stage it was. Vested interests of the carriers and the political parties rule the roost and Patel’s Vision 2020 document, submitted to the Indian cabinet — seeking a change in the rule permitting airline FDI to be provided to airlines wanting to operate overseas after three years of operation instead of the earlier five — was scuttled. Personally, I feel that Praful Patel has spearheaded a sea change in the Indian aviation industry, where foreign airlines now actually compete with the Indian carriers on grounds of quality service, fares, flight frequencies and slots. Indian airport modernisation, done in the face of overwhelming protests and strikes, has led to international standards in our domestic and international airports. (The author is Country Representative-India for Visit London)

‘

CRUISING HEIGHTS March 2009

going,” said a former CEO of a public sector company under the Ministry. Perhaps, Praful’s luckiest break was in getting Ajay Prasad as Civil Aviation Secretary just a month after he took over. The then Union Defence Secretary, viewed as an L K Advani acolyte, was shifted from South Block to the relatively lightweight Civil Aviation portfolio in what was viewed generally as a demotion. But he dug into his job with an energy that surprised many. As one perceptive observer in the Ministry said: “Prasad was grateful to Praful for accepting him, and he implemented the Minister’s diktat with a gusto that was astonishing.” A classic case that many cite to illustrate the Prasad-Praful partnership is the high-profile and often controversial and hostile process for the modernisation of Delhi and Mumbai airports. In spite of the overt opposition from the Airports Authority of India employees and the sub-terrainian opposition of officials, who viewed it as a loss of their ‘crown jewels’, Prasad ran the bureaucratic procedure for the bidding and the final award of the airports to GMR and GVK with an iron hand. He made sure it moved forward as Praful desired, unmindful of the minefields or the controversies. While he worked the red tape, Praful managed the politicians. He had breakfast with the Cabinet Secretary, informally briefed the Left on the developments, and constantly kept the Congress in the loop. And if it came to the crunch, he had his political leader, the redoubtable Sharad Pawar go with him to the Prime Minister to brief him on key issues. Undoubtedly, it helped that he came from the NCP and didn’t have too many interest groups breathing down his neck. Time and time again, he worked the network to have his way: be it the ouster of Additional Secretary V Subramanian, or the induction of Sanjay Narayan (for which he moved heaven and earth), or the exit of Sunil Arora from Indian Air-

Pawan Hans ad.qxd

3/13/2009

11:25 AM

Page 1

cover story

final new change montage.qxd

3/13/2009

12:37 PM

Page 10

2008

COVER STORY AUGUST High-powered panel headed by Cabinet Secretary and comprising Secretaries from Finance, Revenue, Planning Commission, Ministry of Petroleum and Ministry of Civil Aviation set up to examine difficulties faced by airlines; Centre gives final go-ahead for modernising Kolkata and Chennai airports by AAI .

OCTOBER Hyderabad Air Show held.

A CHANGE AGENT WHO HELPED AVIATION SOAR... Praful Patel has raised the civil aviation sector in the country to new heights, says G V Sanjay Reddy.

The last five years have been very eventful in India’s march towards progress and economic development. One sector which has been symbolic of this growth is the civil aviation sector, which has risen to new heights to meet the demands and aspirations of increasing number of passengers. The credit for envisioning this rising flight path for the sector should undoubtedly go to Praful Patel. Considered to be one of the most prolific ministers in the Union Cabinet, his efforts in opening up the Indian skies and putting India’s civil aviation sector on the fast track of development have been far reaching. Having spent the last five years driving change in India’s civil aviation sector, and most significantly achieving what most people thought was next to impossible, a quantification of Patel’s contribution to the sector may be unmatched for some time to come. Credited and acknowledged in global aviation circles as running a ministry with the same hard-nosed business sense that he uses to steer his own business, Patel has taken on challenges head-on. I would like to quote a few lines from a published interview, where he said: “You have to take on challenges. If you are scared, there are enough people to scare you all the time. You have got to call their bluff.” Little wonder then that Praful Patel has a rich repertoire of achievements. Personally, I would count amongst these the privatisation of Mumbai and Delhi airports, remarkably liberal policies on setting up greenfield airports, raising the FDI cap in airlines to 49 per cent, savvy management of resistance to accomplish the long-delayed merger of Air India with Indian Airlines, considered necessary for the airlines’ survival in the face of growing competition from privately-owned Indian carriers and foreign carriers, fleet augmentation for the national carriers — all this particularly at a time when any move along the path of reforms for the Central Government was met with formidable resistance. For the many positive reforms carried out under his watch, he was recognised as “Business Reformer of the Year” by one of India’s most respected financial newspapers two years back. While being fully aware of the challenge to improve India’s fledging airport infrastructure, Patel has himself said on several occasions that the decision to privatise Mumbai and Delhi airports was not an option for the government but a definitive requirement. At the same time, he has strongly pursued the modernisation plan of airports in other metro and non-metro cities under Airports Authority of India. As a result, we are beginning to see brand new terminal buildings, state-of-the-art facilities and, most significantly, a clear focus on passenger convenience at airports across the country. On a personal level, for me, it has been a great experience interacting with Patel. He has a positive attitude and a passion to see Indian aviation rise to global standards. His advice and guidance has helped us immensely, and his eye for detail in matters such as concept and design has pushed us to deliver the best. Patel, in his five-year tenure, has been able to effectively communicate the message that civil aviation is a vital sector, instrumental to the growth of not only tourism but also the economy. There is little doubt in my mind that his success has created a legacy that will far outlast his tenure as a minister. (G V Sanjay Reddy is the Managing Director of Mumbai International Airport Ltd)

‘

CRUISING HEIGHTS March 2009

DECEMBER The 3rd runway at IGI Airport commissioned for low visibility Air Traffic operations.

lines, Praful had his way. Arora’s exit was particularly ironical. Although he had completed his tenure at IA, Arora had done such a first-rate job as CMD that it was taken that he could well get an extension. It wasn’t to happen, though, because, this low-profile Rajasthan cadre officer had a mind of his own and many, particularly Ajay Prasad, found it disconcerting. Arora had to go. At the policy level, it was a state of ‘dynamic flux’. The Civil Aviation Policy never saw the light of the day, for the simple reason that a Cabinet-approved policy would be an imprint in stone and unalterable. But leaving it open-ended would leave enormous advantage with the Ministry to look at issues ‘judiciously’ on a case-by-case basis. As things changed for the better or for the worse, policy could follow suit. A classic example was Praful saying ‘no’ to FDI in the aviation sector (from foreign airlines) in 2004, but vocally pleading for influx of green bucks in 2009. That it hasn’t happened, primarily because of elections, is another matter. But if the policy had been imprinted in stone, it wouldn’t even have been debated. Similarly, his ‘no’ to PIOs (Persons of Indian Origin) getting an NoC to run an airline in India was steadfast. NRIs like Naresh Goyal and Vijay Mallya were appropriate for the business, but PIOs were ‘unwelcome’. There was talk of cronyism and an unfair deal, but he was consistent in his opposition. There is no denying the fact, though, that Praful Patel brought a whiff of fresh air and dynamism into the Ministry. He relentlessly pursued projects and policies, drove his officers on deadline, and worked the political minefield to make sure he met his objectives. Under another Minister, the modernisation programme could have crumbled under the weight of the AAI union’s opposition to the plan, but he tamed their strike and got the project going. Similarly, despite huge opposition, he struck to his guns in having Begumpet

AD dummy.qxd

10/4/2008

5:50 PM

Page 1

cover story

final new change montage.qxd

3/13/2009

12:37 PM

Page 12

2009

COVER STORY JANUARY

FEBRUARY

Ground Handling policy, scheduled to come into force from New Year 2009, deferred because it would have caused major job losses; Airports Economic Regulatory Authority (AERA) notified; Minister Praful Patel hints at possible buying of stakes in domestic aviation sector by foreign airlines.

Government approves handing over of Dr Babasaheb Ambedkar International Airport in Nagpur to a Joint Venture Company ; AI seeks turnaround measures; New integrated terminal building at Srinagar Airport inaugurated; Minister Patel opens new integrated terminals; Foundation stones of new integrated terminal laid (Off the Record, Pg. 6-13).

AUTHENTIC AND PASSIONATE The mark that Praful Patel is leaving behind on Indian and international aviation has the stamp of authenticity and passion, says Vasudevan Thulasidas.

When Praful Patel came in as the Civil Aviation Minister, I was only four months old in Air India. I distinctly recall that we took time to get into each other’s frequency. But once we got used to each other, I found it a pleasure working with the man. Most of the time, he was what he used to tell people, a Minister who was passionate about aviation and wanted to leave his mark on Indian aviation. Many have told me that he was keen on helping his friends in the private sector. Be that as it may, all I can vouch for is that he was very supportive of the national carrier’s growth plans. Without his active leadership, I couldn’t have pushed the large modernisation plans of Air India through the government, be it the acquisition of new aircraft, launch of Air India Express, merger of Air India and Indian Airlines, getting the invite from Star Alliance to join them, etc. Praful Patel was solid in his support and confident about ultimate success. This trait in him was most visible during the privatization of Mumbai and Delhi airports. Praful Patel earnestly believed that he was doing something really good for the country and was prepared to fight for it, never doubting his ability to push it through. That was something that he taught me during the approval process for the merger of Air India and India Airlines. It was frustrating to see the delays in the decision-making process, sometimes attributable to machinations of those with personal agenda. But Praful Patel was never flustered; he was confident that we were going to win in the end. He has not completed the merger in true sense, the integration of the two wings is still to be completed, and that should be one of his regrets. That is what I told him the last time I spoke to him, on January 20, 2009, the last date announced by the Ministry for applications for the job of chairman of AERA. I had not applied and had to tell the Minister the reasons for it. Real and effective integration, on a time-bound basis, as originally envisaged, can still make the airline strong. Barring this one item, Praful Patel has accomplished most of what he had set out to do when he became the Minister of Civil Aviation. India has truly emerged as an aviation power in the world in the last few years. Much of the credit for this goes to Praful Patel. I recall with pride that he was the only Minister of Civil Aviation that IATA had invited to address its AGM in Paris in 2006, when I was on its Board of governors. That was genuine recognition of India's place in the international airline community. (Vasudevan Thulasidas was Chairman and Managing Director of Air India for close to three and a half years of the Praful Patel regime.)

‘

CRUISING HEIGHTS March 2009

and HAL airports closed for commercial operations. And as he said in 2005, he worried about the big picture and left the nuts and bolts to trusted officers. Perhaps, more than anything else, what will endure is his ability to own his decision. “There is always more than one perspective to any issue. I have a perspective on each of them, and I am willing to own it and fight for it,” he told us in an interview early in his tenure. Add to it the almost childlike excitement in riding on the crest of a big wave and making things happen quickly. Buoyed by the double-digit growth, he packed into five years that many wouldn’t in twenty. A fleet acquisition here, new airports there, modernisation elsewhere, a cargo hub in Nagpur, a flying school in Gondia, merchant airports, an air show, a regulatory authority and world-class airports under construction in the big cities. He perfected the art of juggling many balls at one time and backing his chosen ones to the hilt. But he was also uniquely fortunate that with such a heated sector and such strong growth, few were interested in sharp debate on his policies. There was little questioning of his moves, and what he said was policy. A classic case was Indian Airlines morphing into Indian for a year before merging into Air India. To date, Praful has no rational explanation for this decision and he has never been questioned hard enough on this flip flop. With the sector doing so well he could afford to get away with it. In conclusion, the PP years were really PP years — Public-Private partnership years and ‘perform or perish’ years. The first has taken root, the second we shall know some time down the line. The Maharaja is tottering, several others are bleeding and the balance sheets are full of red. Tell that to Praful, and he smiles and states: “I didn’t ask them to buy the planes, I didn’t ask them to get into infrastructure. I only lay the policy and I know it will work.”

Ad dummy.qxd

2/26/2009

10:29 AM

Page 1

final globetrotting.qxd

3/10/2009

5:13 PM

Page 2

GLOBETROTTING

AT A GLANCE

Mass…ssss psychosis, was it?

Bad timing!

IN an unusual incident, passengers on an Aeroflot flight forced change of pilots as they suspected one of them to be drunk. It happened as the flight was about to depart from Moscow to New York. The passengers got worried as the pilot, in his pre-flight announcement aboard Aeroflot Flight 315, seemed to be slurring his words and switched between Russian and incomprehensible English.

WITH the global economy going bust, and companies looking for government funds to help them survive, it’s the wrong time, indeed, to be seen flying in private corporate jets. Several US companies have actually come under severe criticism for their use of corporate jets at a time when they are turning to Washington for financial support. The world’s largest maker of the planes, Textron, recently said that customers cancelled orders for 23 of its aircraft in the fourth quarter and that an

When they approached the flight crew, the passengers were told to “stop making trouble” or get off the Boeing 767 jet. A passenger who called Aeroflot’s head office was similarly rebuffed. The passengers were told it was impossible for a pilot to be drunk. There was total chaos for an hour, during which the passengers pleaded with flight attendants, crew and several Aeroflot representatives who boarded the plane.

Pets are welcome, for a sum! YES, pets are indeed welcome on flights, but at a hefty cost. Pet owners are finding the cost of taking pets on board flights getting more and more obnoxious. Karen Fawcett, a contributor to a travel newsletter, wrote of United’s decision to increase the cost of carrying-on her beloved “Kitty.” “If I were French, I would strike. Being American, I grin and bear it — kinda. That was until United announced it raised the price of Kitty’s transport by $75 each way. She weighs less than most newborn infants and

Still made in America

ith Airbus’ parent EADS deciding not to bid to make the US President's next plane, Air Force One will continue to remain American-made, at least for now. The deadline for the US Air Force's requests for information from bidders has expired and, according to Aviation Week, “This leaves Boeing as the only provider for an Air Force One platform. Boeing is exploring 747-8 and 787 as candidates,” the magazine cited a company official as saying. Airbus makers said that “after careful review, we’ve determined that participation in the AF-1 programme will not help us meet (our) business objectives.” According to the magazine, some industry officials suggest EADS may

have opted not to compete to avoid another high-profile fight with Boeing on Capitol Hill. Buy American advocates criticised the Air Force last year after it awarded the KC-135 replacement deal to a team of Northrop Grumman and EADS North America, which proposed an Airbus A330 variant. That deal was scrapped after Boeing protested and Congressional auditors determined that the Air Force broke procurement guidelines. As aviation consulting firm, Leeham Company, wrote on its blog: an Airbus bid for Air Force One would likely be an even harder sell on Capitol Hill than the tanker, since “there was no way EADS would assemble the A380 in the US, in contrast with the prospect of building the KC-30 air force tanker in Mobile (AL), meaning the airplane would have been assembled in France.” CRUISING HEIGHTS March 2009

the cost is now $200, the same price charged for an additional 50-pound suitcase.” “Am I the only person who feels $200 for transporting a kitty in a mini-carrier is gouging? There are Expats who are forced to factor this expense into their budget and it’s a major factor. Other passengers may view these four-legged animals as animals. But there are some of us who don’t. They’re integral parts of our families. What do you think?”

final globetrotting.qxd

3/10/2009

5:13 PM

Page 3

Codesharing or outsourcing?

Not in good spirit NOBODY is finding it in good taste. Not the flight attendants, who say they’ve been turned into walking billboards with demeaning advertisements for a light beer. Nor the customers, with one, at least, going so far as to say that the promotional advertisements he’s getting have sexual connotations he’d rather do without. The target of the complaints is US city airliner Spirit Airlines. Recently, it came out with a mandatory requirement that its flight attendants wear aprons with a Bud Light beer logo as a revenue-generating tactic. “Turning flight attendants into walking billboards is unacceptable,” said Deborah Crowley, the president of the carrier’s FA union, adding, “The proposed aprons diminish the primary and federally mandated role of flight attendants as safety professionals and our role as first responders onboard.”

Whew, now that’s expensive! AMERICAN Express has increased the cost of borrowing on one of its credit cards to 46 per cent — more than 30 times the Bank of England base rate. The company now charges 46 per cent APR on the British Airways Premium Plus card, making it Britain’s most expensive credit card. Consumer groups said the cost of borrowing on some credit cards had now lost all touch with the base rate. A series of other cards also have APR over 35 per cent — despite interest rates now being at the lowest level since the Bank of England was set up in 1694. Other cards include Virgin Money American Express at 37 per cent and Citi MasterCard at 41 per cent. The card offers British Airways frequent travellers benefits including 1.5 Airmiles for every pound spent on the card. British Airways said the APR was a matter for Amex.

Best airline complaint ever? ACCEPTING the criticism in good spirit, Virgin boss Sir Richard Branson has thanked a passenger who described food onboard the airline as a “culinary journey of hell”. The anony-

at the airline’s plans to codeshare with Canadian carrier WestJet and Mexican carrier Volaris. The blogger says, “What is the difference between Codesharing and Outsourcing? Nothing. One sounds better. This is what Southwest Airlines is doing... Outsourcing.”

Illustrations by Rajeev Kumar

“unprecedented number” of customers asked to defer their orders. As one major shareholder in the company put it, “Thousands of people are being being laid off and yet the company is going to go out and purchase a corporate jet? It’s bad timing.” Citigroup recently cancelled an order for a $50 million jet, after politicians complained that the purchase was excessive for a bank that last year received $45 billion in government funds.

A new blog, Codeshare Curse, has criticised the common practice of airlines to codeshare, or put their names on other airlines’ flights. Identifying itself as “a site dedicated to the employees of Southwest Airlines and the preservation of our beloved company,” the blog has hit out

mous email, in which the complaint came, has been described by the UK Telegraph as one of the best airline complaints in the world. The complainant said that opening the lid of the main meal was like being given a “dead hamster as a Christmas present”. The complaint came at the end of a disastrous flight from Mumbai to Heathrow on December 7 last year. The passenger complained about the size and “baffling presentation” of the “criminal” cookie he was served, among other things. Sir Richard Branson telephoned the author of the letter and thanked him for his “constructive if tongue-in-cheek” email, according to London’s Telegraph newspaper.

US Airways resumes free drink US Airways has withdrawn the $2 charge it had introduced last year for non-alcoholic beverages ($1 for coffee/tea) on board their flights. The charge was started when crude oil touched $150/barrel, but was not followed by any other airlines. It is a common practice by airlines to start some charge (or withdraw) them and see if other airlines follow the initiative (or not). Good for all, except for US Airways’ flight attendants

Real jail for fake cop An American rushing to catch a flight pretended to be a flight marshal so he could get through to his gate in time to board the aircraft as it prepared to taxi out toward the runway. Unfortunately for him, his claim was not swallowed by the authorities. According to a report citing authorities, a man running late for a flight flashed a fake police badge to airline workers and claimed to be an air marshal so they would let him through the gate. After he showed the fake badge and claimed to be an air marshal, employees stopped the plane and let him board. But real air marshals already on the plane recognised his fake badge and kicked him off.

CRUISING HEIGHTS March 2009

INTERVIEW march 2 final.qxd

3/10/2009

5:23 PM

Page 2

INTERVIEW

Dr Temel Kotil, CEO of Turkish Airlines, has transformed the carrier into an internationally recognised airline with an ideal geo-strategic hub at the crossroads of Europe and Asia. On his recent visit to India, Dr Kotil emphasised to Tirthankar Ghosh that the current market conditions have not slowed down Turkishâ&#x20AC;&#x2122;s plans for the future.

: You have come to India and started daily flights at a time when the industry is facing problems. Obviously, this is a calculated move. Tell us about your plans. : We made losses in the last six years. We are not following economic trends. We make sure that our product quality and price is very good, very low priced but high quality and we know the Indian market and so we started our daily flights into India â&#x20AC;Ś14 of them. The scenario looks scary from outside but if you know what you are doing, it is very reasonable. We are opening new routes this year like Sao Paulo, Damascus,

CRUISING HEIGHTS March 2009

INTERVIEW march 2 final.qxd

“

3/10/2009

5:23 PM

Page 3

WE KNOW WHAT”

WE ARE DOING What kind of growth are you expecting from your India flights? You mean load factors? Our machine is an A-330. It is a big machine with around 250 seats. From this market we will target about 75 per cent load factors. It is good enough for us. Our average last year was also 75 per cent. The flight is a semi-long haul. Perhaps, we will aim for larger numbers but we enjoy our 75 per cent. Your daily flights to India… Yes. It was 4+2 earlier. Now it has become 3+4. That means we have doubled it. Your 75 per cent loads that you have been having are mainly to Istanbul or are travellers going out of India on Turkish Airlines flying beyond Istanbul? Istanbul has an excellent position for close-by markets. We have more than two flights per day to Athens. We have about 200 flights to Germany per week. For example, we have a daily flight to Lyons and we have started flights to Mashad (Iran) from Istanbul. So we have covered all the geographical angles. Anybody from India who may want to go to a secondary city — like Athens, Lyons, etc. — their best choice

is Turkish Airlines because there is no direct flight from here to there. Also we cover all the hubs. Basically, what we are serving are close-by markets, not necessarily only Istanbul. India is one of the most interesting countries in the aviation business. We believe in the Indian market. Nearly half of those flying out of India on Turkish Airlines are transit passengers. You would like Istanbul to be the hub for Europe? Istanbul, believe it or not, will be the biggest hub in Europe in ten years. It will be bigger than Heathrow. How long have you been working with this kind of a business model? We put our business plans together in 2003. That was when the government took away all the protection it had given to Turkish Airlines. In effect, the government told us, “We like you guys but you are free. No protection anymore.” We used to be protected as a state-owned company. It was owned by the government. Right now, 49 per cent of Turkish Airlines is owned by the government and 51 per cent from the market. So we are a fully private company. Does the government have a say in how to run the company? No way. The government cannot dictate us. It happened in 2006 and that time I was the CEO also, so I was lucky I had a transition period. And in 2003,

when the government took away the protection, we learned about competition. We learned how to survive without the government and in the SARS crisis in 2005, we learned how one has to avoid a crisis. So, in this crisis period you have undertaken measures like costcutting. Have you reduced flights? No, this year we have had a 25 per cent increase. There has been no reduction. If we stop growing we are dead. But every year if we grow about 25 per cent in revenue, by about 15 in passengers, etc, we will be alive… We are involved in organic growth. We are saving on all items but are not cutting anything in service quality. We spend more money on food and more training for cabin attendants. Last year, we had 1,700 passengers per employee, while it was 800 five years ago. That means we have doubled our efficiency How do you propose to attract more passengers? We will focus on our core business, which is passenger and cargo. At the same time, we support any project that motivates tourism in Turkey, outside Turkey, from India, from Germany or from any other place. Unfortunately, Turkey has not been sold in the Indian market. Also our product is such that anyone who travels feels like a star. Our latest commercial with Oscar winner Kevin Costner shows what I am speaking

CRUISING HEIGHTS March 2009

“

India is one of the most interesting countries in the aviation business

“

Nairobi, Iran ... 11 new routes. Even in crisis we have opened new routes. That means we have some plans. The growth in the number of seats this year compared to the previous year is 21 per cent. It’s amazing…

INTERVIEW march 2 final.qxd

3/10/2009

5:24 PM

Page 4

INTERVIEW

Photos: H.C. Tiwari

about. We believe that air travel should be an enjoyable experience. Turkish Airlines decided to seek high service quality and it means more costs. But when the flight is an enjoyable experience, more passengers will travel. Our approach is to stimulate the market. Our future plans include flying to some other destinations in India. In fact, we are looking at Hyderabad and Chennai.

Turkish Airlines CEO Dr Temel Kotil (centre) addressing a gathering.

Turkish Airlines became the 21st member of the Star Alliance some time ago. Has it made any difference in enhancing your popularity? Joining the alliance was an important step for the airline’s future and building on its strengths of bridging Europe and Asia through its Istanbul hub, and thereby adding value to the Star Alliance network. The number of passengers from Europe to the Middle East has risen by

“

Our future plans include flying to some other destinations in India. In fact, we are looking at Hyderabad and Chennai

“

50 per cent (since joining the Star Alliance). We have experienced an increase in passengers; business passengers mainly. The alliance also helps us in marketing. Earlier, the Turkish Airlines brand was not very well known, but through Star Alliance, people now know it better than when we were alone. Do you want to make Istanbul a big hub for cargo too? Exactly. We have a cargo machine (freighter) and

Tell me, in these times of recession, do you feel the pinch? No. We have started learning again. I have a small presentation on how we learned again. Actually, nothing has happened in the airline business. It is getting more difficult. Compare this (the airline business) to a school. We are school kids. As an example, let’s say there are about 100 students in the class. And it is quite a common thing that life (in school) gets more difficult… and about 20 will drop off this year. We want to make sure that we are not those 20. We became the first 20 and that means we have improved service quality, we have cut and lowered costs… So, we have become like a good student. We do not feel the recession or anything like that. What has happened now (the downturn) is temporary. The aviation industry around the world has been facing crises every 10 years. Unfortunately, this one has come a bit early. But we have learnt that if we do our homework properly, we will be a winner.

CRUISING HEIGHTS March 2009

we are serving the markets which are close to us. The beauty about Istanbul is that from there you can cover a very good market. And with bigger aircraft, you can fill them up you know, and utilise them for both directions. We have flights twice a day to Kiev. If you need to go to Kiev, then you have to come to Istanbul or go to Dubai. Or, you need to go to Hamburg or Frankfurt. Istanbul is better because of its geographical setting. From Istanbul, you can reach 100 cities in Europe, Russia, the Middle East and Central East in five hours. Every five years, we will double our profits, and I am confident of it because we are at the centre of big markets. Our market share worldwide is one per cent, and it will be 2 per cent in 2013. As far as cargo is concerned what kind of loads have you been experiencing from India? Not too much. But we have cargo jets and we are looking for more players; we have small cargo aircraft — not long-haul cargo machines. We are very good in belly cargo. We are right now buying 105 aircraft. They will be either Boeing or Airbus — the tender is going on. Of these, 35 will be long-haul. They could be 777s, the A350s or A330s as well as 787s.

Cargo ahead.qxd

3/10/2009

5:27 PM

Page 3

CARGO

AIR CARGO carriers

SLOW DOWN The Indian air cargo industry might have been temporarily impacted by the global economic downturn, but the projections for the long-term remain bright, reports Tirthankar Ghosh.

he economic downturn’s vicelike grip may have spared India, but it has scalded the country’s export-import sectors. Air cargo has been feeling the heat for quite some time now. Gone are the hype, and the air of optimism that was seen and heard just a few months ago: while start-up cargo airlines announced grandiose plans, established players went on record to state that they were thinking of expansions. For the air cargo business in the country — content to remain in the sidelines for a long time — it was time to rejoice. However, all that was a chapter from the past. The few home-grown air cargo carriers that seemed to have found their wings, thanks largely to the “India story”, have lost them again. Among the handful of air cargo operators, the Chennai-based Crescent Air Cargo had started services after a number of fits and starts. Around the middle of 2008, it started operating daily Fokker flights linking southern India’s major industrial hub, Coimbatore, to Chennai and Mumbai. Crescent had been established in June 2000 by airline pilots. Unable to run it,

The few homegrown air cargo carriers that seemed to have found their wings, thanks largely to the “India story”, have lost them again

they had closed the airline. It had then been taken over by industrialist Santosh Lad — with interests in mining, software, real estate development and air cargo — who started operations from mid-2007. Crescent’s CEO Capt Murali Ram had told this correspondent in May 2008 that the carrier would shortly be starting its freighter operations on the Visakhapatnam-Chennai-Kolkata sector. “Our services would be immensely beneficial for the growing markets of shrimp, tuna exports, garment industry and other perishable goods,” he had said. The carrier was operating with one Fokker F-50, with four/five flights a week, lifting about 40 tonnes of cargo a week. Loads were low, and with fuel prices shooting up, the company was forced to wind up operations around September 2008. According to Capt Ram, “The investors in Crescent are still interested in running the operations, but as of now, the company has sold its lone Fokker.” While Crescent may not have had adequate finances to run the show, Bengalurubased start-up air cargo player Quikjet has strong backers. Promoted by leading

FLYING FREIGHTER: A photo of an Airbus A330-200F that Flyington Freighter will be receiving to start operations.

CRUISING HEIGHTS March 2009

Cargo ahead.qxd

3/10/2009

5:27 PM

Page 4

CARGO

“Looking for the silver lining” Capt Mukut Pathak is optimistic about his yet-to-take-off Delhi-based Aryan Cargo Express (ACE), despite investors doing a backtrack. He talks about his plans in the air cargo business. Has the downturn in the economy affected your plans for starting the business? When do you think you will be able to start proper operations? They have. Our investors have decided to adopt a waitand-watch policy with respect to funding the air-

logistics company and a pioneer in the express courier sector, AFL Private Limited, and Singapore’s Cardinal Aviation, Quikjet would like to be known as a merchant air cargo carrier, which is keen to open up capacity to all players in the market. The gestation period for Quikjet has been long enough to see two CEOs. Former CEO Natesan Ramesh, who had been seconded from Cardinal, believed that Quikjet would achieve what the low-cost carriers had done in the Indian market. Speaking to this correspondent around May 2008, he had said that “we would try to open up the cargo space.” He had also mentioned that with the open skies policy, as far as cargo is concerned, there were opportunities that still remained untapped. Ramesh was forth-

line. They are waiting for concrete signals of revival in the world economy, or at least the signs of stabilisation before funding the airline. All over the world, the aviation business is in a bad shape. However, the cargo business is likely to stage a recovery much faster then the passenger business. In India, the cargo business is still strong and still showing a modest increase. India is likely to emerge first from this global meltdown and we expect a positive upward trend in the second half of 2009. Another silver lining has been the low ATF prices. We expect that by 2012, India will acquire energy security, which in turn will reduce our imports bill and greatly aid to push India as the world’s fourth

Even Quikjet has not been able to take off, despite the fact that it has a Boeing 737-300 freighter based at Chennai, which has clearance from the DGCA Aviation

NO SHOW: Photo from our files show one of First Flight’s ATPs at an airport.

CRUISING HEIGHTS March 2009

largest economy. Keeping all these things in mind, we expect to have our first flight in August 2009. How many freighters would you be starting with? Will they cover domestic markets only? We will launch with three MD11Fs and will gradually enter the domestic market. Our initial thrust will be on international operations only. What are the difficulties you have faced, and continue to face, in setting up the air cargo business? The only difficulty has been raising funds for the launch. Though the banks are sitting on large funds, they are

right: “We believe that the market is sufficiently underserved,” he had said. Naturally, whether it was express or plain air cargo, all newcomers hoped to take a major bite of the pie. Even Quikjet has not been able to take off, despite the fact that it has a Boeing 737-300 freighter based at Chennai, which has clearance from the Director General of Civil Aviation. Two more freighters were expected to join the fleet. Enquiries about future plans were replied by an email from the company’s General Manager - Sales, Prashant Kavi, who wrote: “Mr. Niteen Gupte has succeeded Mr. Natesan as the Chief Executive Officer of QuikJet effective August 2008. Also, we are presently maintaining a restricted media interface and hope to be able to tackle your queries and provide more information in due course of time.” It is believed that Quikjet has changed its business model. Instead of the Boeing 737s, which can carry around 13-18 tonnes of cargo, it plans to fly the bigger Boeing 757/767s or A310s. The planes would provide long-haul capacities to fly as far as Rome, parts of West Asia and China. Apparently, the Quikjet team is grappling with the key question that all cargo carriers have to face day in and day out: will we be able to fill up the freighters? If Quikjet’s plans to tap the market have faced obstacles, Capt Mukut Pathak, with his yet-to-take-off Delhibased Aryan Cargo Express (ACE) — the first flight was supposed to take place sometime between mid-August and mid-September 2008 — is opti-

Cargo ahead.qxd

3/10/2009

5:27 PM

Page 5

reluctant to lend to the aviation sector. The hue and cry raised by other operators has sent a very bad signal to the world at large regarding India’s aviation sector. In addition, most people do not understand the differences between a cargo airline and a passenger airline. This has created additional problems for us. People at times cannot differentiate between apples and oranges. How many tonnes of freight will you be moving in your first year of operation? We expect to offer 700,000 tonnes in the first year, and raise it to 2.0 million tonnes at the end of the fifth year. Of this, only 20 per cent will be domestic capacity, while the rest will be for international operations.

mistic, even though he acknowledges that the downturn in the economy has affected his plans of starting ACE. He told this correspondent, “Our investors have decided to adopt a wait-and-watch policy with respect to funding the airline. They are waiting for concrete signals of revival in the world economy, or at least some signs of stabilisation, before funding the airline.” Pointing out that the aviation business was in a bad shape the world over, Capt Pathak believed that “the cargo business is likely to affect a recovery much faster than the passenger business. In India, the cargo business is still strong and still showing a modest increase.” The country, he said, is likely to emerge first from the global meltdown and “we expect a positive upward trend in the second half of 2009. Another silver lining has been the low ATF prices…keeping all these things in mind we expect to have our first flight in August 2009.” What then are the difficulties faced by start-up cargo operators? Capt Pathak has an answer. The only difficulty has been raising funds for the launch. “Though the banks are sitting on large funds, they are reluctant to lend to the aviation sector… In addition, most people do not understand the differences between a cargo airline and a passenger airline,” he said, adding, “This has created additional problems for us.” Again, perhaps, the fund crunch has forced the country’s premier operator, Air India, to put brakes on cargo plans. In a move that has delayed its air cargo ambitions for quite a while, the carrier has leased out its freighters. This,

LOADING UP IS HARD TO DO: In happier times, an Air India plane readies for cargo.

Perhaps, the fund crunch has forced the country’s premier operator, Air India, to put brakes on cargo plans CRUISING HEIGHTS March 2009

despite the fact that cargo was a big revenue earner for the carrier. However, Anita Khurana, Director Commercial and SBU (Special Business Unit) Head Cargo, was emphatic that “Air India plans to continue with its dedicated air cargo business. There are a lot of false rumours about Air India’s cargo operations in the industry and I would like to make it very clear that AI’s cargo business is going strong and we are not relinquishing any of our future plans,” she said. Pooh-pooing that Air India had lost out to competition, she questioned, “Why don’t we say that Air India is gearing up to face this competition?” She pointed out: “Air India has been the first Indian passenger airline to have commenced dedicated freighter operations

Cargo ahead.qxd

3/10/2009

5:27 PM

Page 6

CARGO within the country and also to international stations. Which other Indian passenger carrier has such freighters? Why does one not recognise this fact about Air India and appreciate us for this achievement?” she asked. Khurana is certain that Air India Cargo will not only make major strides in the air cargo market, but also bring India into the global map with the development of the Nagpur (in the centre of India) hub. “Only when we dream to reach for the stars can we expect to reach the clouds,” she said. That dream has led the country’s pioneer of low-cost flying, Capt Gorur Ramaswamy Gopinath, to set up his integrated logistics outfit, Deccan Express Logistics (DEL). The operations were supposed to start last year but have been deferred to sometime in May-June 2009. Capt Gopinath was recently quoted, “We will be the largest and double the size of existing industry players on day one.” He has his reasons. With the

Its business plans mention that Flyington Freighters would be the country’s first international dedicated freighter airline

“Creating a niche market” Paramount Airway’s M Thiagarajan hopes to convert the goodwill of Paramount Airways into business for his cargo operations, especially in southern India. Did the downturn in the economy affect your plans when you started your door-to-door cargo business? Paramount Airways has a niche market leadership in the southern skies. Paramount Cargo operations are a natural extension that will add to revenue generation. We have launched our time-sensitive cargo, with inbound and outbound flights to destinations like Chennai, Coimbatore, Madurai, Bengaluru, Hyderabad, Thiruvananthapuram, Kochi, Vizag, Tiruchirapalli, Ahmedabad, Goa and Pune. We have a dedicated warehouse at the Chennai airport that is well-equipped with scanners and other equipment. With the maximum number of flights per day to all the sectors in the south, we offer a distinct advantage on the B2B platform. We are utilising the existing belly space of our five aircraft and have a capacity of 100 tonnes per day. Did you face any difficulties in setting up the air cargo business? Paramount cargo is a strategic diversification of our airline business and so we don’t forsee any difficulty as systems are already in place. We are confident that it will do well as we will be able to provide branded cargo service to end-customers to transport materials in good shape with timely delivery.

How will you be different from the other domestic air cargo operators in the country? Paramount enjoys high equity with its discerning travellers. We will convert this goodwill for cargo business, as the profile of our passengers is predominantly from the business community. From floriculture to engineering components, the South offers a variety of opportunities for cargo to be transported in an effective manner.

CRUISING HEIGHTS March 2009

background work almost complete, the second-time start-up entrepreneur has been able to get some big names to advise him. Topping the list is the iconic Ram Charan. In addition, DEL has a team of 180, led by CEO Jude Fonseka. Initial reports state that DEL will have a fleet of six cargo aircraft, all converted: three wide-bodied A310s with 35 tonnes capacity each, and three ATRs with capacities of 5.5-6 tonnes each (three more ATRs will join the fleet in course of time). The ages of the planes range from 10-15 years and they have all been purchased by DEL. Waiting in the wings is the Hyderabad-based Flyington Freighters. Promoted by Deccan Chronicle Holdings Limited, the publishers of the daily newspaper Deccan Chronicle, Flyington had selected Boeing freighters but later decided to go for six Airbus A330-200F freighters for its fleet. In fact, it is the launch customer for the plane and will take delivery of its first aircraft in December 2009, while the remaining five would be delivered in 2010. Its business plans mention that Flyington Freighters would be the country’s first international dedicated freighter airline. The A330-200F is the only midsize, long-haul all-cargo aircraft capable of carrying 64 tonnes over 4,000 nautical miles/7400 kilometers in “range mode” configuration, or 69 metric tonnes up to 3200 nm / 5930 km in “payload mode”. Queries regarding its operation by this correspondent remained unanswered till the time of going to press. The downturn is, however, being used as an opportunity by the Chennaibased all-Embraer fleet, Paramount Airways, to boost its financial position by launching a door-to-door cargo service. The youngest Chairman to head any carrier in India, Paramount’s M Thiagarajan brushed aside the economic downturn. He said, “Paramount Airways has a niche market leadership in the southern skies. Paramount Cargo operations are a natural extension that will add to revenue generation. We have launched our time-sensitive cargo, with inbound and outbound flights to destinations like Chennai, Coimbatore, Madurai, Bengaluru, Hyderabad, Thiruvananthapuram, Kochi, Vizag, Tiruchirapalli, Ahmedabad, Goa and Pune.” The carrier has started with the belly space of its five aircraft, with a capacity of 100 tonnes per day, which would be enhanced to around 300 tonnes a day by the end of the next year. Paramount and Capt Gopinath may be the lucky ones, but most of those

Cargo ahead.qxd

3/10/2009

5:27 PM

Page 7

DEL’s first big step eccan Express Logistics achieved the first milestone for its state-of-the-art Express Cargo Hub at MIHAN (Multimodal International Hub Airport at Nagpur) when it received approvals for the structural design for its Aircraft Hangar. This marked the first step for Deccan Express Logistics towards creating a nationwide infrastructure. Once operational, the express cargo hub will be the first-of-its-kind in India, and would form the core of Deccan Express Logistics’ air and ground distribution network. Spread out across 100 acres, the hub is strategically located at Nagpur’s BR Ambedkar Airport. The hub is expected to be ready for operation later this year, when Deccan Express Logistics goes live with its operations. Speaking on the occasion, Capt Gopinath said: “This would be just the beginning of the various investments Deccan Express Logistics plans to make in building up its infrastructure. Our Express Cargo Hub will handle majority of the cargo moving on the Deccan Express Logistics network, thereby controlling the distribution of shipments across the country. This hub will also be an international hub, connecting the major economies of Asia Pacific, Middle East and Europe via India.”

who conceived plans to start cargo operations on projections that the air freight market would grow at 15 per cent per annum, like Jet Airways, Kingfisher, the Hyderabad-based Flyington Freighters, Reliance Industries Ltd, Avicore Aviation Pvt. Ltd and Shreyas Shipping and Logistics Ltd, have had to put their operations in the cold storage. Perhaps, when the situation betters, there would be more takers for air cargo. Or, maybe, all their plans were misconceived. Take the case of First Flight. One of the country’s wellknown express companies, First Flight had announced that it had acquired ATPs to start its air express services. In fact, the company had signed long-term leases with BAE Systems Regional Aircraft for three ATP Freighters. The three aircraft were scheduled to be delivered from the second quarter of 2006 and would have been configured as E-Class bulk freighters. A year later, in June 2007, First Flight went public with its plans to induct larger aircraft — Boeing 737s — to service the trunk routes and redeploy the ATPs to the feeder routes, according to Deputy Managing Director R K Saboo. But by the end of the year, the situation had changed. First Flight ended its air express operations.

Courtesy: www.deccanexpress.in

Deccan Express Logistics has also signed a Memorandum of Understanding with the GMR Group to set up express cargo operating facilities at Delhi and Hyderabad airports, which will enable DEL to establish an extensive state-of-the-art multimodal (surface and air) storage, transportation and delivery network, bringing connectivity to every corner of the country.

On their part, aircraft vendors continue to be optimistic, saying that the long-term projections for the business were intact CRUISING HEIGHTS March 2009

First Flight’s story is not the only one. In the beginning of this year, Gati, the Hyderabad-based third-party logistics (3PL) service provider, which has leased Air India Boeings, sent a terse message to its investors that it had incurred losses to the tune of a whopping Rs 16.42 crore between July and December last year. On their part, aircraft vendors continue to be optimistic, saying that the longterm projections for the business were intact. Boeing, for example, mentioned in its ‘2008 Current Market Outlook (CMO) for India’ — published around September 2008 — that the country would need only 24 freighters in 2008-27. Incidentally, this was the same figure that Dr Dinesh Keskar, Boeing’s Senior Vice-president, Sales, had projected in 2007. The 2008 figures, Dr Keskar had told this correspondent, were “rooted not only in near-term realities” but also recognised the nature of a long-term forecast. He went on to point out that Boeing could “revise the cargo projections upwards in future. But certainly not in large numbers.” Before the slowdown, the Planning Commission, India’s top economic and social planning body, had forecast that the country’s air cargo movement would grow at a compound rate of 11.5 per cent between 2008 and 2012.

Cargo ahead.qxd

3/10/2009

5:27 PM

Page 8

CARGO

CALM BEFORE

THE STORM The country's airfreight industry saw the highest growth in 2007. Analysing those figures, Vinod Kaul notes, on hindsight, that it was indeed the calm before the storm.

2007 has been the best year, till date, for the Indian Air Cargo Industry. The IATA ranking list for 2007... indicates solid growth performance, in most parameters

rior to the great economic meltdown, there was comparative prosperity, before the recession in many parts of the developed world there was a period of growth. Primarily, before the storm of the year 2008, there was the calm of 2007. Though the havoc in the cargo industry in 2008 has de-stabilised many business organisations, we still have to record 2007 figures for posterity. 2007 has been the best year, till date,

for the Indian Air Cargo Industry. The IATA ranking list for 2007, covering the 522 Indian IATA Cargo Agents, received in the first week of February 2008, (i.e. after the next year's indicative figures are already out), indicates solid growth performance, in most parameters. Accordingly, we find that the new entity DHL Lemuir Logistics (dropping Danzas this time, like AEI earlier), has taken over the No.1 spot, with revenues of Rs. 299.88 crores. This could be a little misleading, as

Indian Cargo Agentsâ&#x20AC;&#x2122; IATA 2000

2001

2002

2003

2004

2005

2006

2007

ORGANISATION

CITY

DHL LEMUIR LOGISTICS

MUMBAI

UT WORLDWIDE INDIA

MUMBAI

260.90

+10.5

JEENA & COMPANY

MUMBAI

155.68

+18.01

NA+

SCHENKER INDIA

MUMBAI

151.13

+91.59

PANALPINA WORLD TRANSPORT

GURGAON

140.99

EXPO FREIGHT

CHENNAI

126.80

(-6.58)

28k

20k

17k

14k

10k

NAk

AGILITY LOGISTICS

MUMBAI

123.97

PENTA FREIGHT

MUMBAI

120.55

+19.36

HERMES TRAVEL & CARGO

MUMBAI

115.27

+4.31

CONTINENTAL CARRIERS

NEW DELHI

112.29

(-8.86)

26w

13w

11w

15w

RJ TRADE WINGS

NEW DELHI

108.71

+34.18

INDAIR CARRIERS

NEW DELHI

103.19

+28.27

31e

17e

20e

21e

NAe

CEVA FREIGHT (INDIA)

GURGAON

96.44

Gross Revenue 2007 (in Rs. Crores)

299.88

Percentage Variance + / (-) over last year

+91.36

SDV INTERNATIONAL

NEW DELHI

88.16

(-2.19)

SKYWAYS AIR SERVICES

NEW DELHI

76.19

(-3.05)

AFL

MUMBAI

73.82

+55.94

19z

14z

24z

UPS SCS (INDIA)

MUMBAI

70.14

WILSON SANDHU

MUMBAI

69.47

CRUISING HEIGHTS March 2009

Cargo ahead.qxd

3/10/2009

5:27 PM

Page 9

TOP PERFORMERS' GROSS REVENUES (in Rs.Crores) and VARIANCE ( in % ) Category 2000

2001

2002

2003

2004

2005

2006

2007

Variance 2007 vs 2006 +/(-)

Top 10

808.45 778.75 952.69 1056.60 1098.27 1524.20 1383.44 1607.46

+ 16.19

Top 25

1455.95 1338.00 1631.84 1809.00 2037.70 2585.44 2361.65 2707.05

+ 14.63

Top 50

1958.24 1825.06 2177.58 2466.20 2726.35 3407.56 3118.43 3559.22

+ 14.13

The comparison of 2007 will be more appropriate with 2005, which has now been pushed aside as the Indian Air Cargo Industry’s finest year

the UT Worldwide + Indair combine is still the best performer, with their gross total of Rs. 364.09 crores, whereas the DHL conglomerate figure presumably included Exel. Looks like UT has done well to permit the consolidation strengths of Indair to blossom. Another combine which has not done as well as expected is Schenker. In 2006, Schenker and Bax Global together had aggregated Rs 243.32 crores, whereas, even after cannibalizing Bax, Schenker's figure in 2007 is Rs 151.13 crores only. It is

sad to note the Bax name missing in this list, after dominating it from their inception in India. Others who have done better than earlier in the top dozen are Panalpina, Jeena & Co, Penta Freight, Hermes, R.J Trade Wings, Expo Freight, Agility (in their earlier avatar as Geologistics) and Continental have put up much better performances earlier. Lower down the order, Alif Air Freight, Nayak Aviation and Broekman Logistics have made quantum jumps to enter the Top 100 for the first time. Overall, the trend shows positive variance at Top 10 (+ 16.19 per cent), Top 25 (+ 14.63 per cent) and Top 50 (+ 14.13 per cent), in comparison with the figures for the year 2006 (see the small table). In fact, the comparison of 2007 will be more appropriate with 2005, which has now been pushed aside as the Indian Air Cargo Industry’s finest year. However, back to the Reality check, as the future has already been seen and 2008 figures will reflect the beating the industry has taken. Let us now look forward to the rest of 2009 with hope in our heart and a song on our lips……JAI HO ! (The writer is Group General Manager — Marketing & Industry Business Development, Group Concorde.)

Rankings List 2007 2002

2003

2004

2005

2006

2007

ORGANISATION

CITY

Percentage Variance + / (-) over last year

000

2001

SA CONSULTANTS & FORWARDERS

NEW DELHI

69.10

+3.72

169

GAC LOGISTICS

NEW DELHI

66.29

+20.29

Gross Revenue 2007 (in Rs. Crores)

EASTERN CARGO CARRIERS (INDIA)

MUMBAI

61.73

(-19.71)

67#

125#

103

101

FLYJAC LOGISTICS

MUMBAI

58.02

(-19.45)

18^

16^

24^

NEW GLOBE LOGISTIK

MUMBAI

56.93

+10.03

ATLAS LOGISTICS

BANGALORE

54.55

+36.79

EAST-WEST FREIGHT

MUMBAI

46.85

138

ASSOCIATED TRADE LOGISTICS

NEW DELHI

44.55

MODERN CARGO SERVICES

MUMBAI

43.47

(-5.36)

ZEUS AIR SERVICES

MUMBAI

42.47

+4.61

JET AIR FREIGHT

MUMBAI

40.27

168

176

187

182

DART GLOBAL LOGISTICS

CHENNAI

39.77

(-19.72)

AMRIT SEAIR EXPRESS

NEW DELHI

39.04

+0.13

INDEV LOGISTICS

CHENNAI

38.85

(-28.25)

157

POMONA CARGO MOVERS

MUMBAI

37.68

(-0.08)

33x

NAx

27x

22x

MAERSK INDIA

NEW DELHI

37.59

(-24.52)

LA FREIGHTLIFT

CHENNAI

36.60

+1.50

CRUISING HEIGHTS March 2009

Cargo snippets.qxd

3/10/2009

5:31 PM

Page 2

CARGO JOTTINGS

Managing cargo in crisis At the recent World Cargo Symposium at Bangkok, the IATA called for a supply chain approach

he International Air Transport Association (IATA) called on the cargo supply chain to battle the current air cargo crisis by improving security, delivering a better product and boosting efficiency. “The industry is in crisis and nobody knows that better than our cargo colleagues. Cargo demand has fallen off a cliff. After a shocking 22.6 per cent decrease in December, it dropped a further 23.2 per cent in January,” said Giovanni Bisignani, IATA’s Director General and CEO, in a recorded message to the 700 industry experts attending IATA’s World Cargo Symposium at Bangkok during March 2-5, 2009. Air cargo represents about 10 per cent of industry revenues. As 35 per cent of the value of goods traded internationally is transported by air, air cargo is a barometer of global economic health. “The continued decline in cargo markets is a clear sign that we have not yet seen the bottom of this economic crisis,” said Bisignani. In December 2008, IATA forecast 2009 freight volumes to fall 5 per cent. Combined with a decrease in yields, this would result in a 9 per cent drop in freight revenues to $54 billion. “Unfortunately, the shocking fall in demand that followed is making these projections look optimistic,” said Bisignani. “As we battle this crisis, we must look for opportunities that will build our future with a more efficient industry focused on meeting customer needs. Customers want a good price and a great product, delivered via the supply chain with speed and reliability. And in crisis, customers will only get more demanding. To meet their expectations and build a solid future for the industry, change is required,” said Bisignani. Bisignani highlighted three priorities for the supply chain: security, e-freight and Cargo 2000: Security: Air cargo security costs continue to rise. Screening technology is not being optimised and definitions, requirements and enforcement vary from country to country. IATA called for a strong industry effort to convince the US

that its plans to implement 100 per cent cargo screening in 2010 are misguided. “Scanning everything loaded onto the aircraft is a waste of precious resources. To be effective, we must identify the risks involved with a supply chain approach. IATA’s Secure Freight strategy focuses on a data-driven, risk-based approach with shared responsibility throughout the supply chain. Governments must remember that this is a global industry. We need a globally coordinated approach that looks at the entire supply chain,” said Bisignani.

Efficiency with e-freight: In the face of falling yields and demand, Bisignani stressed that e-freight as a key driver for efficiency and savings is more important then ever. “Improving quality with-

MAN OF THE MOMENT: Aleks Popovich, Director and Global Head of Cargo IATA.

CRUISING HEIGHTS March 2009

out reducing costs will not get us far. We need to modernise the old paper-based processes of air cargo with e-freight,” said Bisignani. Each freight shipment is accompanied by more than 30 documents. E-freight currently has the capability to convert 12 of these to electronic documentation. Already, it is operating at 18 locations covering 26 airports. “E-freight is not a theory. It is working and putting in place the basis to deliver efficiencies and cost reductions throughout the supply chain. By 2010 our target is to have the capability to remove 64 per cent of the paper from 81 per cent of international shipments. In other words, we will eliminate 20 documents and be live in 44 locations,” said Bisignani. “To be successful, we need the commitment of the entire supply chain to generate economies of scale. The benefits are enormous: $4.9 billion in cost savings for the supply chain, a 22 per cent reduction in shipper buffer stock, a 25 per cent reduction in customs penalties, an average 24 hour decrease in shipping time and a 1 per cent increase in market share against sea shipments. Everybody benefits. Everybody needs to participate,” said Bisignani. Quality — Cargo 2000: Bisignani also called for greater industry participation of the entire supply chain in Cargo 2000 to improve quality. “Cargo 2000 quality standards are even more important in this crisis. IATA is committed to Cargo 2000. It is part of our recommended quality standard. But to be effective, we need the whole supply chain to be aligned with a common vision on how to deliver quality. That is what Cargo 2000 is all about,” said Bisignani. Cargo 2000 was established over a decade ago to simplify processes by reducing 40 steps in the logistics chain to 19, and to implement effective quality standards. The IATA World Cargo Symposium’s theme was “Focus on the Customer: Delivering in Turbulent Times”. The meet looked at building a solid future for air cargo, while battling the crisis that currently envelopes the global economy.

Cargo snippets.qxd

3/10/2009

5:32 PM

Page 3

Emirates SkyCargo to fly high in ’09 EMIRATES Airline recently unveiled plans to increase the number of flights across its network by 14 per cent in 2009, enhancing cargo capacity by 17 per cent. In the next 12 months, Emirates SkyCargo will take delivery of two new, state-of-the-art Boeing 777 freighters. The planes will have a maximum payload of 103 tonnes. In addition, 18 new widebodied passenger aircraft will be added to the Emirates fleet, enabling Emirates SkyCargo to increase frequencies and capacity on many existing routes. Ram Menen, Emirates Divisional Senior Vice President Cargo, said: “The last two years have not been easy for the air cargo industry, but we hope to see some stability return in the coming

Downturn is opportunity for TNT WHILE 2009 might be a difficult year for some companies, for others it has come as an opportunity. The India arm of the Netherlandsbased integrated express distribution company, TNT India, has chalked out detailed plans to enhance its domestic market. Taking full advantage of its road network, TNT India hopes to enlarge its business. Of course, it will be riding piggy-back on Speedage, a leading road transportation company it acquired in 2006. In fact Speedage’s integration in TNT was completed in August last year. The Speedage acquisition was part of TNT’s Focus on Networks strategy, and was in line with the company’s objective to become the leading provider of express deliveries in India. In fact, among TNT’s expansion plans is leasing of 400,000 sq ft more area in the five major cities of Bengaluru, Delhi, Mumbai, Nagpur and Kolkata in the next three years to expand the hub and the spoke distribution network. It will be in addition to the existing 200,000 sq ft area the company has in these cities. TNT has set up hubs in these cities and would like to increase their size so that each can connect to 20-30 depots or spokes around them. The distribution major services India’s telecom, retail, pharmaceuticals, automobile and high-technology sectors.

UPS India grows at 20 per cent UPS recently announced its financial results for the fourth quarter of 2008. In the Asia Pacific, UPS reported nearly 20 per cent growth in export volume for India, and around 10 per cent for China, for the quarter compared to the same period last year. For full year 2008, the region delivered growth of nearly 5 per cent. “UPS continues to grow in India with a nearly 20 per cent year-to-date growth in

months. For Emirates SkyCargo, 2009 will be a year of consolidation. We will bolster our presence in markets where we have a greater demand from our customers, such as China and Africa.” In recent months, Emirates SkyCargo has increased capacity from its Dubai hub to India to more than 2,500 tonnes a week. As new aircraft come online, the weekly cargo capacity will increase to the tune of approximately 10 per cent to Europe; four per cent to Australia; 17 per cent to the Middle East, 15 per cent to Africa; while capacity into the US will grow eight per cent when the thrice weekly services to Los Angeles and San Francisco go daily from May. In total, the additional capacity will see more than 700 tonnes of cargo capacity added to the Emirates fleet.

export volume. Our strategic alliance with AFL and introduction of new products last year have substantially expanded our network and capabilities, enabling us to provide greater customer access and service in this market,” said Pirojshaw Sarkari, Managing Director, UPS Jetair Express Pvt. Ltd.

DHL launches ‘Fashion and Apparel Centre for Excellence’ DHL expects India to become increasingly important as an exporting country into Europe, with growth driven largely by the Apparel, Engineering and Manufacturing and Manufactured Goods sectors. The company recently launched the `DHL Fashion and Apparel Center for Excellence’, based in Tirupur, Tamil Nadu, to facilitate trade within the region, Europe and North America. The first-of-its-kind centre across Asia Pacific, it will comprise a core team of industry experts and be responsible Shabana Khan for developing bespoke products and solutions, and provide consultancy services to customers. DHL Global Forwarding is capitalising on the opportunity in the Fashion and Apparel Logistics industry, estimated to be worth $3.9 billion per annum in South Asia. India, Pakistan, Bangladesh and Sri Lanka alone are estimated to account for well over $2.4 billion in this fast-growing industry. DHL’s services cover the entire logistics value chain of the fashion industry — from material purchasing to the sampling business, to quality control of production and direct delivery to the boutiques of international fashion companies. “South Asia is a key sourcing, manufacturing and distribution base for the global fashion industry. The logistics sector is worth over $3.9 billion per annum, and it forms a Sanjay N Tejwani critical component in the global supply chains

CRUISING HEIGHTS March 2009

Cargo snippets.qxd

3/10/2009

5:32 PM

Page 4

CARGO JOTTINGS of the world’s best-known brands,” said Amadou Diallo, CEO (South Asia Pacific), DHL Global Forwarding. “In South Asia, Finished Apparel is the fastest growing segment and is expected to continue to grow rapidly. As manufacturing moves to lower cost countries, supply chains in the fashion industry have become extended and more complex, increasing trade and legal demands, including import controls, quotas and tariffs.” DHL Global Forwarding’s focus on the Fashion and Apparel sector is timely, as Apparel and Footwear constitutes the largest Airfreight and Ocean freight export commodity group from South Asia to Europe, accounting over 16 per cent of total airfreight export volumes, and 13 per cent of total Ocean freight export volumes. Meanwhile, DHL’s Global Forwarding business unit recently announced the appointment of two key members: Shabana Khan as Director for Airfreight and Sanjay N. Tejwani as Director for Ocean Freight segments of its Global Forwarding business.

DHL offers fast service to foreign university applicants International express and logistics major DHL has developed an exclusive service to facilitate students applying to foreign universities. This service — DHL University Express — is an exclusive air express service, designed to deliver student applications to universities abroad in the most reliable, fast and secure way. Understanding the needs of the student community, Super Saver University Express Prepaid Coupons have been introduced to further support them to manage their critical university documents around the world. The coupons are available in two options of booklet values. A ten-coupon booklet is valued at Rs 8,250, offering an additional saving of 17 per cent, and a five-coupon booklet is valued at Rs 4,375, offering an additional saving of 12 per cent. These coupons are valid / redeemable across the largest network of combined 350 Blue Dart-DHL Retail outlets across the country.

Cathay Pacific selects AMBER LEADING provider of software solutions and outsourced services to the airline, logistics and travel industry, Kale Consultants Ltd announced recently that Cathay Pacific Airways had selected its AMBER, cargo revenue accounting solution. AMBER will help the carrier and its subsidiary Hong Kong Dragon Airlines to automate all cargo revenue accounting processes. With airlines seeking various means of reducing operating costs directly on one hand and improving efficiencies on the other. Kale’s AMBER will be integrated with Cathay Pacific’s business information system and will work alongside a programme of enhancement to address the varied requirements of Cathay Pacific and its subsidiaries, including efficiently managing the rapidly growing and complex cargo operations. “Before selecting Kale Consultants, we undertook an exhaustive study of solutions in the market” said Eddie Cheung, Manager Revenue Accounting of Cathay Pacific “Revenue accounting is a vital process in any airline’s business, and a modern cargo revenue accounting solution must be flexible, accurate, simple to use and have a high level of automation. AMBER provided the best overall fit to our business requirements”. Neela Bhattacherjee, Head - Airlines SBU at Kale Consultants, was certain that the strength and flexibility of the software tilted Cathay towards AMBER. “Cathay Pacific is the third largest international cargo airline in the world, and their selection of AMBER after a long period of scrutiny and evaluation cements Kale as the leading provider of cargo revenue accounting solutions in the market today.”

Boeing hands over freighter to Air France BOEING recently celebrated the delivery of the company’s first 777 Freighter to launch customer Air France, at a ceremony at the Future of Flight Aviation Center & Boeing Tour near Paine Field. “Our new Boeing 777 Freighter will operate very well with our 747-400ER Freighters,” said Air France Executive Vice President for New Aircraft & Corporate Fleet Planning, Pierre Vellay. “Also, we will benefit from the airplane's commonality with our proven 777 passenger fleet, and improve our cargo efficiency to help us through the current economic difficulties.” Providing cargo capacity normally associated with larger airplanes, the 777 Freighter can fly 4,880 nautical miles (9,038 kilometers) with a full payload of 226,700 pounds (103 metric tonnes). The new airplane is expected to progressively replace the 747-400 Boeing Converted Freighter (BCF) in the Air France Cargo fleet. Air France currently operates five 747400ER Freighters and four 747-400BCFs.

CRUISING HEIGHTS March 2009

Airport & Airline 2009 Expo Pragati Maidan, New Delhi, India

3-5 August 2009

Gateway to the Indian Civil Aviation Market

Airports and Airports Infrastructure

Air Cargo & Logistics

Airlines

Training & HRD

General Aviation

Ancillaries & Components

MRO

IT Applications / Solutions

Your k o Bo ace Sp NOW

Aircraft Interiors

Security Partner

Ministry of Civil Aviation Government of India

Supporting Associations

Airports Authority of India

217 B, Okhla Industrial Estate, Phase III, New Delhi 110 020 Tel: +91 11 4279 5000 Fax: +91 11 4279 5098 / 99 Praveen Singh, Group Manager, (M)+91 98997 86777 praveens@eigroup.in Bhaskar Joshi, Sr. Manager, (M)+91 93508 46030 bhaskarj@eigroup.in

Cargo snippets.qxd

3/10/2009

5:32 PM

Page 6

CARGO JOTTINGS

Flying train CREATING air cargo history of sorts in the country, the Delhi Metro Rail Corporation (DMRC) recently received one of its coaches from Goerlitz in Germany. It was the first of the eight train coaches which will come by air. The metro coach, which was flown in an Antonov AN-124, at a whopping 1.4 million euros per train set, is part of two train sets that will come by air. The major reason for bringing the coaches by air is to cut down on the time. According to the

Managing Director of the DMRC, E Sreedharan, the coaches were needed urgently in view of the rise in the number of metro users. The coaches will be put into service three months after they are assembled. The modern coaches, named Movia and manufactured by Bombardier â&#x20AC;&#x201D; with state-of-the-art equipment like CCTVs and rear view cameras and audio-visual alarm for operation of all doors â&#x20AC;&#x201D; had been loaded on special trailers before being put into the Antonov. In addition, they were well padded to ensure that there was no damage in transit. Bombardier, which has been supplying the coaches to the Delhi Metro, has set up its manufacturing unit at Vadodara in Gujarat. The unit will be supplying around 75-odd trains to the DMRC by the end of 2010.

Photos: H.C.Tiwari

BIG BIRD: The Antonov unloads the first of Delhi Metro's coaches at Delhi's International Airport that it ferried from Germany.

CRUISING HEIGHTS March 2009

CH sub from:IIIrd cover.qxd

2/26/2009

6:42 PM

Page 1

Welcome to Cruising Heights 9

New

r cove

jan

ver

l:co

fina

NEW

mver

to.q

jany

00 10/2

4:48

Page

CRUISING HEIGHTS has been part of the Indian aviation scene for many years now. In this period, we have established a name for quality reporting and analysis on issues relating to every aspect of the aviation business.

nove

Rs 60

Janu

ary 20

February 2009

Rs 60

One of the first true aviation magazines of the country, CRUISING HEIGHTS was started with the idea of supporting professionals in the airline business to make informed choices on a variety of subjects—from ground handling to cargo to airport development—all of which are transforming the Indian aviation scene in mind-boggling ways. We also target the general reader—the educated Indian who is keen to be an informed Indian—to know what's happening in the aviation business. So, the magazine is professionally written in a style and manner for everybody to understand. Published twelve times a year, CRUISING HEIGHTS reports in depth on all facets of the aviation and aerospace environment in the country and also as events affect us from overseas. Dedicated news and regular feature sections in each issue on airlines, airports, policy and personalities.

Only Rs.60/

Join our aviation loving family…

Please accept my subscription for 12 issues of Cruising Heights

Name____________________________________________________________________________________________ Address____________________________________________________________________________________________ Ph. No.______________________e-mail__________________________________________________________________ Payment

Cash

Cheque

Cheque/DDNo. _________________________________________________________________________________________ Drawn on____________________________________________________________________________________________ _________________________________________________________________________________________________________________ No. of Issues

Newsstand Price

Discount

You Pay

You Save

Rs. 720/-

10%

Rs. 648/-

Rs. 72/-

Date............................

Signature of Subscriber..................................... Cheque / DDs should be drawn in favour of

NEWSLINE PUBLICATIONS PVT. LTD. Send your subscription to Newsline Publications Pvt. Ltd., C-15, Sector-6, Noida-201301(U.P.) Contact us on : 0120-4145555, 9810095120, e-mail: jaya@newsline.in

Spotlight.qxd

3/10/2009

5:39 PM

Page 2

Photos: H.C. Tiwari

FOCUS

Customer rules the roost! Respect, genuine care, quality commitment — customers in the aviation industry are crying for all this and more. Hence the need to constantly improve customer service levels in the industry.

ustomer is the king, and needs to be serviced in the best possible way at all times. This was the underlying theme of the seminar on "Challenges in Improving Customer Service Levels in Aviation Industry", organised by the Foundation for Aviation & Sustainable Tourism (FAST) and Market Insight Consultants (MIC), at Indian Habitat Centre on March 6, 2009.

Lt Gen K M Seth (left) with AAI Chairman V P Agrawal (lighting the lamp) as Gurcharan Bhatura (right) looks on. Vignettes from the FAST seminar.

CRUISING HEIGHTS March 2009

Inaugurating the seminar, Airports Authority of India (AAI) Chairman V P Agrawal highlighted the problems faced by the airport operators, especially because of the environment in which they operate, where employees of wide multiplicity of agencies such as airlines, customs, immigration, health, concessionaires are working at the airport. 'Customer Relations' is where the interface between the customer and service provider takes place, he emphasised, adding, “To my mind, good customer service can be summed up in one word — respect.” Welcoming the dignitaries and delegates from the aviation industry, Lt Gen (Retd.) K M Seth, President FAST, said that privatisation and the ensuing competitive environment in the aviation sector have resulted in having a fresh look at the way they serve their ‘customers’. Gen-

Spotlight.qxd

3/10/2009

5:39 PM

Page 3

uine care for customers costs nothing but commitment from each and every employee engaged in different organisations working at the airport or associated with the aviation sector, including the government agencies, he added. General Seth further mentioned that FAST, which is an autonomous research organisation, was willing to play its role as a facilitator and could help the industry by conducting customer satisfaction surveys and organising appropriate orientation programmes for the employees of both airports and airlines, including government agencies. FAST, in collaboration with the Ministry of Civil Aviation and DGCA, will be hosting an International Conference in mid-September 2009 to highlight the need for greater cooperation and “Open Sky Policy” in South East Asia, where all the SAARC and ASEAN countries are likely to participate. Delivering the keynote address, Sanjay Nagi of Market Insight Consultants highlighted the collective need to go beyond the ordinary, and get into extraor-

(Extreme right) Kamal Hingorani makes a point as Bhupesh Joshi (to his right) looks on during the seminar and below, the interactions that took place during the meet.

dinary efforts to understand and cater to the changing demands of the customers from the aviation sector. He touched upon the need to have paradigm shifts in thinking at the time of airport development and also during regular operations. FAST Director General Gurcharan Bhatura moderated the panel discussion on “Satisfied Customers are pre-requisite to Sustained Growth”. GMR DIAL/ HIAL was represented by Ashwani Khanna, Vice President, Terminal Management. Besides, Bryan Thompson, VP - Terminal Management, MIAL, Hari K. Marar, Chief Operating Officer from BIAL, DP Singh, GM, Corporate Planning, AAI and. Saloni Nangia, Vice President Technopak, also participated. In his opening remarks. Bhatura observed that the then International Airports Authority of India (IAAI) started measuring Customer Satisfaction level (CSL) in 1986. AI is still conducting their

own surveys. Value for money is what every customer wants. Concessionaires play an important role in satisfying customers, he said. The panel on airlines was chaired by Dr Naseem Zaidi, Director General Civil Aviation, and moderated by Sanjay Nagi. Zaidi, in his opening remarks, emphasised the importance of on-time performance of airlines. He further stated that airlines should be more responsive to passengers and there should be a common customer satisfaction level programme to be run on all airlines. Senior executives from all the major airlines, such as Air India, Jet Airways, Kingfisher, Indigo, SpiceJet etc. participated in the panel discussion and deliberated in-depth various issues pertaining to customer grievances, such as refund of air fares, overbooking, loss of baggage, delays and cancellations, safety issues, behaviour of crew members and other operational staff.

‘Value for money is what every customer wants. Concessionaires play an important role in satisfying customers’ CRUISING HEIGHTS March 2009

snippets.qxd

3/10/2009

5:48 PM

Page 2

SNIPPETS

DOMESTIC AIRLINES Goyals are International Entrepreneurs

NARESH Goyal, Founder-Chairman Jet Airways, and his wife Anita (Neeta) Goyal, Executive Vice President Revenue Management and Network Planning for India's premier international airline, were voted “International Entrepreneurs of the Year” by the readers of Asian Voice, the highest circulated newspaper among the Asian community in the UK. The Goyals received the award from Geoff Hoon MP, UK Secretary of State for Transport, before an august gathering of British parliamentarians and other distinguished guests at the House of Commons, as part of the Asian Voice Political and Public Life Awards 2008. The Asian Voice Geoff Hoon presents the “International Political and Public Entrepreneurs of the Year” Award to Naresh Life Awards are and Anita Goyal. presented to people who have made a special impact in the preceding 12 months, either internationally, or in their local communities. The shortlists for the awards for 2008 were decided by a select panel including Marsha Singh MP, Lord King of West Bromwich and Baroness Howells of St Davids. Jet gears up to ‘protect’: Jet and ICICI Lombard General Insurance have tied up for the launch of a unique overseas and domestic travel insurance product called ‘JetProtect’, offering security against possible risks during travel. JetProtect can be purchased exclusively by visiting Jet Airways’ website — www.jetairways.com. The overseas and domestic travel insurance policy covers a host of situations, such as medical expenses caused by accidents, possible loss from trip cancellation, loss or delay of checked-in baggage, compassionate visit by a relative in case of illness, and a lot more. The insurance policy can be purchased on the airline website simultaneously while booking flight tickets. In case a Jet ticket has already been purchased through any other channel, customers have the option of purchasing insurance by visiting the ‘Purchase Policy’ section under ‘Plan Your Travel’ on jetairways.com. Offers extra baggage allowance: This was a February bonus from Jet Airways. The airline introduced a free check-in baggage allowance of 10 kg more than what is allowed normally for passengers. A Jet statement said the offer was applicable for those availing of the airline’s web, kiosk or SMS check-in facilities and checking in for travel between February 1 and February 28, 2009. Jet CEO Wolfgang Prock-Schauer said the airline was confident that the baggage offer would enable passengers to look beyond traditional ground

check-in facilities, where possible, leading to faster, quicker and more efficient operations at airports. Introduces special fares on international routes: In a move to boost business, Jet Airways has announced special fares for First and Business Class passengers from India to London, Brussels, Europe, UK, New York, Toronto and Asian and Gulf destinations. The offer is valid for customers travelling together and will provide the couple with tickets to London from Mumbai or Delhi for Rs 2,00,000 per person for First Class and Rs 75,000 for Business Class. There is, however, a rider to the offer: it can be availed only if the passengers have purchased their tickets during February and customers are required to complete their outbound travel by March 31, 2009.

New ‘meal’ from SpiceJet IN a bid to enhance customer convenience, SpiceJet has launched a special “Book your meal before you fly’ option on all its flights. As per the offering, passengers can now pre-order onboard refreshments at the time of booking their tickets through spicejet.com. This helps them avoid the hassle of on-board cash transaction. The choice is a vegetarian or a non-vegetarian combo comprising a wholesome sandwich and a refreshing drink. This facility has been introduced on the basis of customer feedback. Apart from refreshments, SpiceJet also offers a range of special gift items for purchase on board. These can also be bought online through Spicejetmall.com. And also some spicy fares: In another interesting offer, SpiceJet has announced Spicy Hot Fares starting at Rs 99 across the network. The scheme is applicable for tickets booked 21 days, or more, prior to the date of travel, and is valid till June 30, 2009. Announcing the scheme, Sanjay Agrawal, Chief Executive Officer, SpiceJet Limited, said, “At SpiceJet, we remain committed to stimulating the market by making flying more affordable. This advance purchase fare is another step in that direction. Families can now plan to spend holidays together and business travellers can plan their meetings well ahead. This is a win-win offer for both business and leisure travellers.” BIG Music and SpiceJet promote Bollywood: BIG Music and Home Entertainment and SpiceJet came together to implement an innovative “Word of Mouth” campaign to promote the music of film 13B in an innovative way. The promotion, which started at the end of February 2009, comprised an onboard customer engagement, by which the occupant of seat number 13B had a surprise waiting for him/her. The 15-day activation across 115 flights daily on SpiceJet reached out to about 3.5 lakh upwardly mobile travellers like Manohar. According to Kulmeet Makkar, CEO BIG Music & Home Entertainment, “We are delighted to partner SpiceJet in this innovative in-flight promotion. SpiceJet’s network of 115 flights daily gives us an opportunity to reach a large and specific audience using new media, and create greater recall for the movie and its music.” Samyukth Sridharan, Chief Commercial Officer, SpiceJet Limited said, “This collaborative effort with BIG Music is interesting for its innovation and for the potential to generate customer excitement. We are excited to be a part of this promotion and we believe it will add an extra zing to the spicy journey for our customers.”

CRUISING HEIGHTS March 2009

snippets.qxd

3/10/2009

5:48 PM

Page 3

AI offers free travel for spouse

AIR India recently introduced a new scheme extending free travel on domestic sectors for a passenger’s spouse. The scheme was on the lines of the carrier’s ‘Companion Free Scheme’ available on its West-bound international flights. It was effective for travel from January 7, 2009 till February 28, 2009 in Executive Class, and enabled a full farepaying passenger in Executive Class to take his/her accompanying spouse free of cost in the same Class. Only the Passenger Service Fee and User Development Fee, as charged by the airports, were applicable on the travel of the spouse, who had to travel with the passenger on the entire journey. Reschedules Bahrain-Kerala flights: Beginning January 23, Air India has rescheduled its flights between Bahrain and Kerala, increasing the frequency of its flights from Bahrain to Thiruvananthapuram from once to thrice a week. The carrier has also simultaneously reduced its flight frequency between Bahrain and Kozhikode from six to four a week. Since Indian Airlines is already operating daily from Bahrain to Kochi and Kozhikode, this change will accommodate the airline’s plan to spread out its network, following the merger of Air India with Indian Airlines. Takes lead in domestic fare cuts: This time, it was the domestic passengers who got the benefit of Air India’s bounty. The carrier once again took the lead in introducing further cuts in its fares on key domestic routes. The scheme, APEX-21, was applicable on travel on or before February 28, and the passenger could avail of a basic fare of Rs 99, with Passenger Service Fee of the government and a fuel surcharge as add-on charges.

AI Express flies to Kuwait AIR India Express, the no-frills airline of National Aviation Company of India Limited, has commenced flight operations from Thiruvananthapuram to Kuwait with a weekly flight. With this, the total number of international flights operated by Air India Express from the city in a week has gone up to 23. Meanwhile, the Air India Express had also started serving ‘hot meal’ on board its flights to

various destinations. Light refreshments, soft drinks, tea, coffee and drinking water are being served by the airline free of cost on board the flights.

Kingfisher launches Mumbai-London service KINGFISHER Airlines has launched daily direct flights between Mumbai and London. The flights come with five star services, on a brand new Airbus A330-200, widely billed as the best A330 ever built for any airline. Configured in two classes, Kingfisher First and Kingfisher Class, the spacious full-length wide-bodied twin aisle cabin of the A330-200 provides more comfort and pleasure in flying. Extends services to Colombo: Kingfisher has also introduced daily direct flights from Bengaluru to Colombo and Chennai to Colombo. The flights on these two new routes are being operated using brand new Airbus A320 aircraft, featuring personalised inflight entertainment on every seat, gourmet cuisine and five star services by the crew. Decides to beef up international operations: In a move designed to give a fillip to its international operations, Kingfisher has decided to strengthen its overseas operations with the planned induction of up to five more A330s during 2010. The airline has however, deferred its plans to fly to New York and San Francisco immediately. It is also considering deploying its low fare offering, Kingfisher Red, on short-haul international routes. The airline, it may be recalled, had launched its international operations with a direct Bengaluru-London flight on September 3 last year. It now plans to fly to seven more countries this calendar year.

GoAir launches flat fares AS a special promotion for all passengers planning trips and looking at buying in advance, GoAir has announced a unique allinclusive fares offer. Not only does the special fare on advance purchase include surcharge and other taxes, it gives the passenger the benefit of fares at unbelievable prices. These fares — ranging from Rs. 1,700 to Rs. 2,700 — are valid for tickets purchased 21 days in advance of the date of travel.

INTERNATIONAL AIRLINES Emirates cuts fares from India OFFERING competitive fares, Dubai-based Emirates has revised its fares for passengers travelling to destinations like Dubai, London and New York from India, with return Economy class airfares starting from as low as Rs. 15,490, Rs 20,990 and Rs. 39,990 respectively. Emirates operates double-daily services from most of its Indian gateways to Dubai, from where the passengers can get connecting flights to more than 90 global cities. Emirates, which operates over 150 flights per week from its 10 Indian gateways, was in fact the first international carrier in India to incorporate the fuel surcharge within the existing airfare. Doubles Kochi flights: Meanwhile, Emirates has also doubled its flights on the Dubai-Kochi route,

now flying twice a day in this sector. The airline has stepped up its frequency by adding two more flights to the route, taking the total count to 14 weekly flights from Kochi. Besides, the cargo capacity has increased to over 220 tonnes a week, said Jayan Gopinathan, Emirates’ Sales Manager, Central Kerala. Announces A380 services to South Korea: Emirates Airline has announced that it would begin operating its ultra-modern and environmentally-friendly A380 aircraft to Seoul’s Incheon International Airport in November 2009. The new service represents the aviation world’s first A380 operation to Seoul, as well as Emirates’ first A380 service to North East Asia. It follows the successful deployment of Emirates’ A380s to New York and London, and soon-tobe-launched Sydney and Auckland.

CRUISING HEIGHTS March 2009

Tourism.qxd

3/10/2009

5:56 PM

Page 2

SNIPPETS

TRAVEL & TOURISM Come Spring, Go Vienna IT’S Spring once again in Vienna. Time to waltz and dance, time to indulge in high fashion and design. And giving expression to the mood of festivity are Viennafair and the festival for fashion and photography. Held every spring, Viennafair can be regarded as an incubator and showcase for young galleries from Central, South and Eastern Europe. Each year, some 100 galleries exhibit artworks by as many as 1,500 artists. Vienna’s gallery hotspots Eschenbachgasse and Schleifmühlgasse are represented, as are numerous exhibitors from abroad (www.viennafair.at). Fashion is what events staged by Unit F büro für mode are all about. Generally scheduled for late May/early June, this festival for fashion and photography puts the spotlight on Vienna's creative scene, as do the individual events during this festival.

(Top, right) Ilicali from Pegasus Incoming, Bleckmann from Salzburg Tourismus, Ambassador Dr Ferdinand Maultaschl, Buxbaum from the Vienna Tourist Board, Mrs Ilicali from Pegasus Incoming, Christine Mukharji from the Austrian National Tourist Office and Austrian Trade Commissioner Hans-Joerg Hoertnag; (left) Donner Fountain at Vienna and (above) Grzebyta and Buxbaum from the Vienna Tourist Board at the recent Austria-Summer 2009 workshop.

Travelling to UK made easy INDIAN travellers planning to visit Britain will find the going much easier now, thanks to an inspired initiative of the national tourism authority VisitBritain, with the support of the UK Border Agency. As part of this consumer initiative, VisitBritain is bring-

(R-L) Paramjit Bawa, Country Manager - India, VisitBritain, Colin Simonds, General Manager, Commercial Services, VisitBritain and Chris Dix, Director, South Asia and Gulf, UK Border Agency, unveiling the travel guide, “My Guide To Britain”.

For the record, 2008 was the sixth record breaking year in succession for the Vienna tourist industry. Vienna recorded a total of 10,232,000 overnight stays in 2008, reaching the goals of Project 2010 (10 million bed nights by 2010), two years ahead of target. This year is expected to be even better since 2009 marks the 200th anniversary of the death of famous composer Joseph Haydn (17321809), for which a plethora of celebrations are line up. Not to be left behind, Viennese hotels are offering keepsakes for visitors to take away as souvenirs. Parks in full Spring bloom, more rides and attractions at the Prater amusement park, new shopping opportunities, new instant picture download service for journalists — Vienna this Spring is the place to be in.

ing to valued travellers a range of popular UK travel products, which they can buy before they fly. These products facilitate their travel, sightseeing and attraction visits during their stay in Britain. Some of the popular products are the Oyster card, London Pass, tickets for Madame Tussauds and tickets to the London Eye. These products are now available at six of the UK Border Agency’s Visa Application Centres, operated by VFS Global. In addition, these travel products can also be easily purchased online at www.visitbritainshop.co.uk and through a VisitBritain toll free number 1800 209 7071. A 32-page brochure, 'My Guide to Britain’, available at the VFS operated Visa Application Centres to the estimated 500,000 visa applicants every year, highlights the various attractions open to visitors across exciting destinations in UK.

CRUISING HEIGHTS March 2009

Tourism.qxd

3/10/2009

5:56 PM

Page 3

The best job in the world, indeed!

Australia hot favourite among Indians

Queensland has received a record number of 34,684 applications for The Best Job in the World. Tourism Queensland has had to put extra staff on the job to process these applications. Paul Buggy, Regional Director (Korea, India, Middle East, South Africa and Inbound), Tourism Queensland said, he was “blown away” by the interest in the Island Caretaker role. “A last minute rush saw more than 7,500 applications come in during the last 48 hours alone, making the role of Island Caretaker for the Islands of the Great Barrier Reef arguably the most sought-after job in the world,” Paul said. The Best Job in the World is part of a Tourism Queensland marketing campaign raising awareness of the Islands of the Great Barrier Reef as a holiday destination. For a salary of $AUD150, 000, the successful candidates will spend six months based on Hamilton Island, exploring the Islands of the Great Barrier Reef and reporting on their experiences via a range of communication channels including website and video blogs.

WITH the year 2008 witnessing a total of 116,000 Indians visitors, Australia has well and truly emerged as the hot favourite among Indian travellers as a long-haul destination. The year 2008 marked a 22 per cent increase over 2007, helping Australia cross the 100,000 mark for Indian visitors for the first time. Arrivals from India are expected to perform well, with an average annual growth rate of 17.1 per cent through to the year 2017. Commenting on the growth, Maggie White, General Manager, South, South East Asia and Gulf Countries, Tourism Australia said “The visitor arrival figures for 2008 from India are extremely

encouraging and rewarding. India continues to be one of the largest markets for Australia and has consistently moved up in the global rankings of our target markets. We are confident about continued growth from this region and look forward to another great year ahead.” The statistics, according to Tourism Australia, show that nearly 60 per cent are first-time visitors.

It’s truly Malaysia! HAVING registered 550,738 tourist arrivals from India in 2008 to mark a record increase of 30.4 per cent, Tourism Malaysia has kicked off a mission to expand its Indian presence. Taking ahead the previous year’s growth momentum, Tourism Malaysia recently embarked on its South Asia Sales Mission, led by Zulkefli Sharif, Director, South Asia, West Asia & Africa Division. Expanding its business horizons, strengthening its brand presence and forging new trade alliances, a 36-member high-level Malaysian trade delegation travelled through Delhi, Mumbai and Chennai to explore mutual business opportunities. The delegation had a business interface with their Indian counterparts to offer new packages, featuring innovative itineraries, fresh locales focusing on beyond Kuala Lumpur tourism products. Speaking on Tourism Malaysia’s India market way forward, Zulkefli Sharif, said, “Positioned as the 6th most prominent tourism source market, the target arrivals for the year 2009 from India is 600,000.”

(Left) Tourism Malaysia's road show in progress in Delhi and (left, above) Zulkefli Sharif, Director, South Asia, West Asia & Africa Division.

Focusing beyond the five key metro cities, Tourism Malaysia aims to enhance its brand presence in the cash-rich tier-II and tier-III Indian cities. These cities are the potential source base as they include the largely untapped first-time traveller segment that is looking out for a quality international holiday experience. “With changing lifestyles patterns and in order to lure young and suave travellers from India, Tourism Malaysia will continue to focus on shortbreaks offering focused itineraries customised as per the travel segment requirements,” Sharif added. Tourism Malaysia, formally known as Malaysia Tourism Promotion Board (MTPB), sarted its India market operation in 2000-01 with the objective of putting Malaysia as a destination of choice for every Indian traveller.

CRUISING HEIGHTS March 2009

Tourism.qxd

3/10/2009

5:56 PM

Page 4

SNIPPETS and tourism supply. TAAI’s India 2020 Vision will be presented in parliament and also at governors’ and state conferences in future. TAAI will also assist establishing physical connectivity (roads), electronic connectivity and Information and Communication Technology (ICT). Employment potential will be enhanced as will infrastructure, remote village tourism, better highways, shorter rail routes, more destination-to-destination roadways, more motels, more road side inns and rail, road and air safety measures in tie-ups with the best affiliated companies in the world. TAAI’s tourism council will enhance its tourism connections with national and international tourism boards, with extensive road shows, exhibitions, trade TAAI charts out roadmap — Vision 2020 fairs to promote special interest TAAI recently mapped out a plan for its travel and tours, incentive tours, tourism fraternity — TAAI Vision 2020. educational tours, adventure For this, TAAI will identify the critical factors that tours, medical tours and Rajii Rai with Jagdeep Rikhy impact the development of the national and specialised field tours in art and international tourism investment environment. architecture, Indian cuisine, gem and jewellery, forts and palaces, As a roadmap, TAAI's tourism council will help the tea making, orthinology, wildlife and many more sectors of tourist government in the estimation of the anticipated growth of tourism interest. investment. TAAI will seek incentives to hold several workshops Besides Vision 2020, TAAI’s other forthcoming activities will with investors, with the participation of specialised bodies from include TAAI Awards, TAAI Institute and TAAI’s NRI the private sector, in developing the future of tourism investment Connection.

Saif romances Kareena in Mauritius DESTINATION Mauritius’ romance and luxury quotient with Indian celebrities got a boost when Kareena Kapoor and Saif Ali Khan posed together for their first-ever cover story for Harper Bazaar India edition. Mauritius was the perfect getaway for the star couple to celebrate their love and romance, enjoying their lighter moments of togetherness, while basking in the tranquil beauty of the Mauritian landscape.

Sharing his thoughts, Rajeev Nangia, Associate Director Operations, TRAC Representations, Representative of Mauritius Tourism in India said, “Mauritius has always been a destination associated with romance. Bollywood's most romantic couple Saif and Kareena shooting together for the first time in Mauritius, has once again proven the destination’s popularity among the people who know how to celebrate togetherness and romance.”

CRUISING HEIGHTS March 2009

Tourism.qxd

3/10/2009

5:56 PM

Page 5

And the award goes to… IT was a day of accolades and awards. The National Tourism Awards were presented to institutions, individuals and others for their contribution to the tourism industry. Union Home Minister P Chidambaram gave away the awards in the presence of Minister of Tourism & Culture Ambika Soni and Minister of State for Tourism & Culture Kanti Singh at a glittering ceremony held at the Convention Hall of Ashok Hotel, New Delhi. The highlight of the awards this year was the ‘Atithi Devo Bhava—Pride of India Awards’, instituted to recognise the outstanding contributions by Professionals/ Individuals/ Corporates /Organisations from the Tourism Industry for exemplary service giving beyond call of duty. The award this year has been given to Taj Mahal Palace & Tower, Mumbai and The Oberoi & The Trident, Nariman Point. The employees of these hotels had demonstrated exemplary courage during the terrorist attacks of November 2008. Awards were also presented in emerging sectors of tourism such as Cruise, Responsible, Accessible Tourism and Golf. Mahaparinivaran Express (Buddhist Circuit Tourist Train — IRCTC has been awarded the Most Innovative Tourism Project Award this year. For the first time in history, Haryana Tourism won the National Tourism Award for the year 2007-08 in the field of “Promotion of MICE Tourism in Government Sector”. On behalf of the Rajasthan government, state Tourism Minister Bina Kaka received the Best State/UT (Tourism related programmes) award. Ashwani Lohani, Managing Director, MP Tourism received the award for the Best Rural Tourism Project, Village Paranpur, Distt. Ashoknagar, MP. The Home Minister also gave away awards to Dr M Rajaram, MD, TDC and Dr V Irai Anbu, Secretary, Tourism and Culture Department, Tamil Nadu Tourism, for Best Tourism Promotion Collateral Publicity Material, received jointly with the Government of Karnataka. Dr Venu V, Secretary (Tourism), Government of Kerala, along with M Sivasankar, Director, Department of Tourism, were also among the awardees on behalf of their government. Le Passage to India (LPTI) was the proud winner of three prestigious awards. It won the First Position for Outstanding Performance as an Inbound Operator for the year 2007-2008. Le Passage to India joint venture partner, TUI Travel, also received an

1 9

3 7

6 TOP HONOURS: Photo 1. P Chidambaram and Ambika Soni lighting the lamp; 2. Bina Kaka, Tourism Minister, Rajasthan receiving the award; 3. Home minister giving award to Ashwani Lohani, M D, MP Tourism; 4. And to Dr M Rajaram, MD, TTDC & Dr V Irai Anbu, TN Tourism; 5. Sanjay Razdan with wife Anita Razdan receiving the award; 6. Kumari Padmaja, Joint MD, HRH Group of Hotels receiving the award; 7. Rajiv & Rohit Kohli of Creative Travels takes the honours; 8. Dr. Venu V, Secretary (Tourism), Govt. of Kerala along with M. Sivasankar, Director, Department of Tourism, Govt. of Kerala receiving the award; 9. Ambika Soni & Pranab Mukherjee giving award to Ghulam Naqshband & Arjun Sharma of Le passage of India.

award for the Best Overseas Tour operator to India from Europe and Best Foreign Charter Operator into India. Ghulam Naqshband and Arjun Sharma received the awards. Among the other awardees in the Tour Operators/Travel Agents categories were CRUISING HEIGHTS March 2009

Sanjay and Anita Razdan of M/S Razdan Holidays and Rajiv and Rohit Kohli of Creative Travels for Best Mice Operator. Kumari Padmaja, Joint MD, HRH Group of Hotels, received the award in the Heritage Grand Hotels category. Chef Peter Fernandes of O'Coquerio, Goa, won the `Best Chef of India — Other Category’ award.

Tourism.qxd

3/10/2009

5:56 PM

Page 6

SNIPPETS For that home away from home

FOR travellers to Delhi, it is an ideal retreat, yet a home away from home. Tucked in the posh Sundar Nagar area in the heart of the national capital, The Shervani, New Delhi, promises to be an ideal place to stay, with its understated elegance and personalised service. An interesting conversion of an old style residential building of the ‘60s into a boutique hotel with just 19 rooms, The Shervani is located conveniently within walking distance of Pragati Maidan — the Exhibition centre — and the famed Old Fort, besides being in close proximity to business centres like Connaught Place and New Place and also the airports and railway stations. Nestled The Shervani in a tree-lined avenue, it offers old world charm with all modern amenities.

Celebrate ‘Braj ki Holi’ with Sheetal Regency IT’S Holi time once again. And Hotel Sheetal Regency, Mathura, is back with its world-famous ‘Baj ki Holi’ package. The 2night/3-day package is valid from March 1 to March 15, 2009. In line with the mood of the festival, it includes tours to Gokul, Raman Reti, Mahavan, Mathura (local) and Vrindavan. Additionally, the package includes visits to Agra, Shri Krishna Janam Bhoomi, besides Govardhan, Barsana, Nandgaon, Dwarikadhish Temple and Vishram Ghat Aarti experiences.

Metropolitan celebrates ‘Glory of Spirits’ IT was a celebration with a difference. The occasion was ‘The Glory of Spirits’ — a whisky-tasting extravaganza, for which whisky producers from around the world joined the Metropolitan Hotel. It was a selection par excellence — from blends to single malts and bourbon. Single malts, premium and deluxe brands, from Ireland to India and Scotland to Spain, vied for attention with finger-licking hors d’oeuvres created by the Metropolitan Hotel’s chef and his team. Guests were also treated to a range of cocktails made with whisky such as Rob Roy, Stiletto, Rusty Nail, Cobbler and Perfect Manhattan, as well as spirited coffees like Irish coffee, Café Manhattan, Café Met (whiskey & sambuca), Irish Monk (Coffee & Irish Cream) and Dr. Café (scotch & drambuie). Starts New Year with Thai Food Festival: In association with The Royal Thai Embassy and Tourism Authority of Thailand, the Metropolitan Hotel kicked off the New Year in style. It joined hands in organising a culinary event focused on Thai cuisine, which has become internationally famous for its superb blend of the four fundamental tastes of sweet, spicy, sour and salty. The Food Festival showcased the unique characteristics of Thai food

and culture with traditional music and dancers from Bangkok with the hope that this will encourage Delhites to visit this beautiful country and experience everything it has to offer. Chefs Jareuk Sri-Aroon and Aek Charttrakul from Suan Dusit Rajabhat University, who have promoted Thai food all over the world, shared their culinary passion for authentic Thai cuisine with the citizens of Delhi.

Claridges goes for luxury polo and spa resort THE Delhi-based Claridges Hotels & Resorts has signed an ‘Expression of Interest’ to operate and manage the Royal Polo, Golf & Spa Resort in Bairat, Rajasthan. Its co-partner, Swiss House of Private Finance Sarl, based in Switzerland, has been working on different projects in Austria, France, Germany, Switzerland and India. The letter of Expression of Interest was signed by the CEO of Swiss House, Manmohan Makhni, an Indian businessman, settled in Switzerland and running different companies in India and in Europe. Ideally located between New Delhi and Jaipur and spread over an area of 220 acres, the Royal Polo, Golf & Spa Resort will feature an 18-hole premium golf course — designed by internationally-acclaimed golf architect Perry Dye — polo field and stables, a state-of-the-art spa with six treatment rooms, 60-80 golf villas, 80 rooms and suites, besides contemporary food and beverage outlets and other leisure facilities. The project will be built over two years and is scheduled to open in late 2011. Peter Leitgeb, President and CEO, The Claridges Hotels & Resorts commented, “Despite the recession and slowdown in the economy, The Claridges Hotels & Resorts has continued with its growth trend. We are delighted that we will be appointed to manage this prestigious luxury resort in Rajasthan. This luxury resort will be the first-of-its kind resort in India.”

Deal signed for Sarovar Portico SAROVAR Hotels & Resorts has signed a deal for international standard Sarovar Portico at Hosur, Bengaluru. The Sarovar Portico, on the Bengaluru-Hosur highway, will be the sixth Sarovar property in the region. The other Sarovar properties in Bengaluru are Savannah Sarovar Premiere, Radha Hometel, Park Inn & Suites, Park Plaza and Golden Heights Sarovar Portico. The present room inventory of Sarovar Hotels in Bengaluru totals 206 rooms, with 104 guest rooms at Savannah Sarovar Premiere and 102 guest rooms at Radha Hometel. The Portico brand currently enjoys presence across 11 destinations in India at Ahmedabad, Badrinath, Indore, Lonavala, Hyderabad, Kochi, Manali, Durgapur, Goa, Shirdi and Chennai.

Spring magic at Aura IT’S magic this spring at Aura, the spa at The Park New Delhi, Kolkata, Chennai and Visakhapatnam. Designed to pamper the body and the senses, Aura has come out with three exciting packages — Spring Magic, Floral Bliss and Golfers’ Tonic. The Spring Magic package includes scrub and wrap, combining Sesame seeds, Mint, Papaya and Guava,

CRUISING HEIGHTS March 2009

Tourism.qxd

3/10/2009

5:56 PM

Page 7

which help in toning and firming the skin. Floral Bliss lets in rehydrating facial, using extracts/pulp of flowers, such as Jasmine, Neem and Frangipani, known best for their rehydrating, purifying and astringent properties, coupled with the magical effects of honey and extracts of Rose. Golfers’ Tonic introduces specific techniques using thumb pressure points, knuckling and ulna sculpting, with a pain relieving and invigorating blend of Rosemary, Cedarwood, Lemongrass.

ADTOI Convention urges stakeholders to promote domestic tourism

THE third annual convention of the Association of Domestic Tour Operators of India (ADTOI) held in the middle of January 2009 at The Ashok Hotel in New Delhi gave a call to promote domestic tourism. The two-day convention was inaugurated by Nawang Rigzen Jora, Tourism Minister of Jammu and Kashmir. An exhibition on the sidelines of the Convention was inaugurated by Sujit Banerjee, Secretary — Tourism, Government of India. Speaking at the inaugural function, the J&K Tourism Minister said that his state was ready to invite tourists. The state government had planned out infrastructure for the development of tourism in all the three regions of the state.

Sun International woos Indian travellers SUN International has initiated several steps to boost its presence in the Indian travel market. “Through extensive market research, we now understand the requirements of the Indian market. We offer special rates geared to the Indian leisure market with discounted honeymoon, shopping and family packages. In the near future, we will offer special 2010 World Cup Soccer packages,” according to Lianne Kelly-Maartens, Sun’s International Marketing Manager — India. Since 2006, Sun International has successfully concentrated its marketing endeavours in India and has grown this market at a rate of 30 per cent per annum. In a targeted

A business session in progress during the ADTOI convention

Among the others who addressed the domestic tour operators were Sanjay Kothari, Additional Secretary, Ministry of Tourism, Cherian Philip, Chairman, Kerala Tourism Development Corporation (KTDC), Kiran Chaudhary, Tourism Minister, Haryana and G S Chahal, Executive Director, Madhya Pradesh Tourism. investment, Sun is also striving to build awareness of its other two 5-star properties, the Table Bay Hotel in Cape Town, and Royal Livingstone Hotel in Zambia. Sun International has always played host to some of Bollywood’s illustrious film industry and Sun City Resort is a favourite location. Another major Indian initiative was the recent South Indian Food Festival presented by the High Commission of India at the Table Bay Hotel in October 2008. Elsewhere, within the Sun International group, the diversity of Indian cuisine is also celebrated at the Raj Restaurant and Calabash Restaurant at Sun City Resort. The Royal Livingstone Hotel recently appointed Anuj Ovalekar as Sous Chef.

CRUISING HEIGHTS March 2009

snippets.qxd

3/10/2009

5:48 PM

Page 6

SNIPPETS Yatra.com’s “Fair Deal Promise” IT’S a promise of a fair deal, packaged excitingly in a new scheme from Yatra.com. Through “Yatra Fair Deal Promise”, the online travel agency now offers a comprehensive set of benefits to all its customers who book international air tickets with them. Every time a consumer buys an international air ticket, he would be assured of a ‘Fair Deal Promise’ offering the most competitive prices for all international air tickets. He would also be entitled to receive free shopping vouchers worth Rs 4,000 with every air ticket. Besides, he can save additional 10 per cent on the base fare if he is owner of a Master Card. Not only this, the customer has the flexibility to pay only 25 per cent of the air ticket value and the balance amount can be paid at a later date through multiple payment options, such as Cheque, Demand Draft or Credit Card, at no additional costs.

Galileo ties up with AI for joint promotion GALILEO has tied up with Air India for an exclusive joint promotional campaign, offering a bouquet of rewards to its travel partners (travel agents) for using Galileo terminal. The campaign focuses on what is considered the most important period for the travel industry, that is January 1, 2009 to February 28, 2009. All IATA travel agents are eligible to register for the promotion and should give minimum 100 incremental segments over the combined sale of October 2008 and November 2008. Only ticketed PNRs with travel upto March 31, 2009 would qualify under the offer. Agents with highest productivity per region shall win these attractive prizes. Joins hands with HKTB: In another initiative, Galileo has joined hands with Hong Kong Tourism Board (HKTB) to reward the Indian travel trade. This first-of-a-kind programme utilises the strength of the GDS distribution to augment the Indian arrivals into Hong Kong. The 60-day activity is targeted at over 6,000 agencies in 11,000 touch points, which are spread across 333 cities in India. As part of the programme, any Indian travel agency creating a booking to Hong Kong or beyond would be eligible for the promotion, and hence an opportunity to win rewards, like HK trips, Laptops, iPhones and LCDs. The promotion is valid from January 27 to March 27, 2009. These rewards would be directly proportionate to the productivity of the travel agency.

Extravaganza’ in 2009. The KTO also announced the MoU stating that Korea is Herbalife’s preferred location for its events and training, and it is expected that Herbalife will bring 10,000 to 30,000 visitors to Korea in every three years. The ‘Herbalife Asia Pacific Extravaganza 2009’, which will be taking place at the KINTEX in Goyang-si, Gyeonggi-do, from June 12 to 14, 2009, is an annual mega event for the Asia Pacific region.

Special holidays, the Sri Lankan way TAKING off from where the New Year festivities culminated, Sri Lankan Holidays announced two exciting new packages to Bangkok and Singapore. The packages came at highly affordable prices and were effective from January 15 to February 28, 2009. Meanwhile, Sri Lankan Holidays, the leisure arm of SriLankan Airlines, also launched a special ‘second passenger travels at one rupee only’ holiday package. Every traveller who bought the two days/three nights holiday package to Sri Lanka could take another traveller along by paying only one rupee. The package is for travellers from India and is valid till April 30 this year. It is being offered from seven Indian cities — New Delhi, Mumbai, Bangalore, Chennai, Thiruvananthapuram, Goa and Tiruchi.

Banyan Tree leisure packages now in India BANYAN Tree Hotels and Resorts have forayed into the Indian market with their niche and exclusive Banyan Tree leisure packages. These packages will be promoted and marketed in India through TRAC Representations (India) Pvt Ltd, the appointed General Selling Agent (GSA) for Banyan Tree. Talking about Banyan Tree’s India market initiatives, Narej Farik, Regional Director Sales-India said that, “Banyan Tree’s plans to increase its presence in India are a reflection of the evolving tastes and standards of Indian consumers to patronise experiential holidays. Our brand understands the art of the Asian experience and offers a holistic experience through high-quality resorts and spas managed by a team of professionals.”

Korea woos tourists with ‘herbalife’ THE Korea Tourism Organisation is wooing tourists this June during the Herbalife Asia Pacific Extravaganza week. The Organisation is expecting 25,000 foreign Herbalife Independent Distributors and their families from 11 different countries in the Asia Pacific region during the event. Korea Tourism Organisation President and CEO Oh Jee-Chul had earlier announced that KINTEX was selected as the venue for the ‘Herbalife Asia Pacific

CRUISING HEIGHTS March 2009

snippets.qxd

3/10/2009

5:49 PM

Page 7

be introduced to boost business tourism. MGTO will support and host a number of MICE activities, including the PATA Annual Meeting 2009 in Macau this April.

It was ‘racing’ time once again in Malaysia MALAYSIA played host once again one to the most exciting cycling races in the world. The 14th edition of the Le Tour de Langkawi 2009 saw 20 teams with 120 riders from the world over

Going deeper with marriage vows IN the Philippines, one can now actually marry under the sea, and perhaps end up going deeper into the relationship. The Philippines offers a unique opportunity for underwater nuptials, where one can get married in traditional Filipino style, on the beach or five meters below the undulating surface. And no need to worry if you don’t know diving. The diving centre will train and certify the couple-to-be within a few days. Before taking the plunge, the bridegroom will have to be equipped with all the necessary scuba gear. And the bride, with flowers on her hair, will have to tread the water. The groom would wait anxiously a few meters away before the much-awaited descent begins. The ceremony lasts 30 minutes.

Macau celebrates 10th anniversary MACAU, which welcomed a record number of over 30 million visitors last year, is celebrating its 10th anniversary this year in style. Macau Government Tourist Office (MGTO) has announced

ride 1,000 kms across the length and breadth of Malaysia for the seven-day annual sporting extravaganza, held February 9-15, 2009. One of the world’s most important events in the international cycling calendar, the tour plays a significant role in promoting sports tourism and in establishing Malaysia as an important sporting venue.

Celebrating Chinese New Year in Malaysia EXOTIC meals and family gatherings marked the celebration of the Chinese New Year in Malaysia from January 26 to February 9, 2009. Dragon dances, plump blossoms and mandarin orange greeted visitors to this most important Chinese festival. Georgetown city in Penang marked the occasion with the richness of the living heritage in Malaysia, in line with its status as a UNESCO World Heritage City. Several thematic little “towns” were set up, highlighting different cultural aspects of Malaysian cultures. The added attraction of the Chinese New Year was the Parade — with stilt walkers, acrobatic performances and lion and dragon dances, which completed the ambience of absolute festivity.

the launch of a series of promotional activities focused on World Heritage to celebrate the anniversary of the establishment of Macau SAR. According to the director of MGTO, the objectives this year are diversification of tourism products and source markets. New tourism products such as hop on “Heritage Bus", free docent service at World Heritage sites will be introduced, in addition to the popular scheduled cultural performances at tourist spots. Besides, the SAR government is engaged in developing business tourism and meetings, incentives, conventions and exhibitions (MICE) industry. Promotional tools such as a Macau Convention Brochure, Macau Incentive Travel Guide, second edition of Macau Meeting Planners Guide, and MICE video will CRUISING HEIGHTS March 2009

back page 60.qxd

3/10/2009

6:03 PM

Page 2

BACK PAGE

Over Atlantic,

Call u later! altitude and allows passengers to send and receive text messages and make and receive calls, just as they do when roaming abroad. Emirates Engineering are now rapidly rolling the system out across the remainder of the Airbus and Boeing fleets. AeroMobile is presently operating on Emirates A340, A330 and B777 aircraft. Usage data from actual flights shows that at peak times, in excess of 100 passengers are switching on their mobile phones during a flight. Later this year, the system on Emirates aircraft will be upgraded to offer GPRS services. This will enable passengers to send and receive e-mails via devices such as Blackberrys and laptops with GPRS data cards. But there are skeptics. As one writer said: “nine out of 10 airline passengers in Europe, says the EU, carry mobiles. That means an average of 170 aboard a full Ryanair

Coming back home is pleasurable. But miss the presence of Abhishek, who as I write has just landed in New York for the screening of ‘Delhi 6’. He has been on a long non stop flight and has to drive straight for the show, but thanks to the modernization of facilities on aircrafts these days, he was able to text me from the air at 38,414 feet to say he had his first mid air shower !! Emirates does carry a wonderful reputation of excellence in the air!! —Amitabh Bachchan in his blog

ell, it seems that Emirates are indeed keeping people connected. Emirates' in-flight mobile telephone service has clocked up its 100,000th last month, confirming a dramatic increase in calls this year. A total of 31 Emirates passenger aircraft are now installed with the AeroMobile service, the largest of any commercial airline. The milestone was passed when a Singaporean passenger made a call from 36,000 feet during Emirates flight EK404 from Dubai to Singapore. The AeroMobile in-flight system allows passengers the choice of safely using their own mobile phones to make and receive phone calls and text messages from Emirates aircraft, with charges in line with international roaming rates. More than 30 per cent of passengers

US President Barack Obama loves to use his Blackberry even in flight, and has been able to persuade his security staff to let him keep using it.

on each flight take advantage of the facility. While first 50,000 users were recorded in the first nine months since the system’s launch, the second 50,000 have been clocked in less than two months. Patrick Brannelly, Emirates’ Vice President, Passenger Communications and Visual Services, said: “The AeroMobile facility is growing in popularity day by day. The feedback has been excellent, and our passengers are clearly using the system to stay in touch, as we saw with big increases in the number of calls and SMS messages over special occasions such as the New Year period. We even saw a surge at the time of the result of the US presidential election. “For many of our passengers, making a call on their own mobile phone during a flight has become as natural as watching their in-flight TV screens, which offer a choice of up to 1200 channels of entertainment.” The service can only be used at cruise CRUISING HEIGHTS March 2009

flight — a terrifying prospect. Now, no one can claim that the average no-frills flight is a haven of tranquility, but how much worse it will be when the passenger next to you starts a loud conversation — and they are guaranteed to be deafening, because of the high ambient noise level — a cacophony that will be exacerbated by the inevitable random refrain of ridiculous ring tones.” And may we add, you could well be solicited a credit card, an OD account or a debit card at that rarified height! Make your choice.

RNI.qxd

3/10/2009

9:30 PM

Page 13

RNI NO. DELENG/2006/16897